Spain's New-Car Market Shows Strong Growth and Shift Towards Electrification
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The Spanish new-car market is experiencing a significant surge in growth, with a 13.9% increase in registrations in the first half of 2025, totaling around 609,801 units[1][3]. This growth is largely driven by the shift towards electrified vehicles.
In January 2025, a total of 72,322 new passenger cars were registered, marking a 5.3% increase in registrations compared to the same period last year[1]. The Spanish new-car market saw a registration growth of 48.5% for battery electric vehicles (BEVs) in January 2025[1]. This growth in BEV registrations is particularly noteworthy, as it leaves diesel registrations with the same market share as BEVs, 6.9%[1].
Hybrid vehicles also played a significant role in Spain's new-car market in January, with a 23.5% year-on-year increase and a 45.2% market share[1]. Plug-in hybrid vehicles (PHEVs) also saw a 14.5% increase, giving the technology a 7.3% market share[1].
However, the overturning of the Royal Decree in January 2025, which ended the MOVES III incentive scheme for BEV and PHEV purchases, may discourage buyers from purchasing a BEV unless a new plan is put in place[1]. The MOVES III incentive scheme offered buyers up to €7,000 towards the purchase of a new BEV or PHEV with an electric range of 90km or more[1].
Despite this, the Spanish Government's Reinicia Auto+ program, which supports vehicle purchase recovery after regional issues, has helped sustain sales[3]. The rising market share of BEVs and plug-in hybrids also reflects the European-wide electrification momentum, with BEVs alone growing over 23.9% in Q1 2025 in Europe[2][4].
Spain bucked the trend in January, being the only one of the big five European markets to see growth[1]. The European Central Bank's decision to lower interest rates also made financing for new vehicles cheaper, which may have contributed to the growth in Spain's new-car market[1].
The growth in Spain's new-car market was aided by the increase in registrations of electrified vehicles. If the current trajectory holds, Spain could exceed 1.1 million new-car registrations by the end of 2025, though this would still be a 14% reduction compared to 2019 pre-pandemic levels[3].
Raúl Morales, communications director of FACONAUTO, stated that there is a slowdown in orders for EVs due to the repeal of the MOVES III plan[1]. ANFAC is working with the Spanish government to reinstate the MOVES III incentive scheme for BEV and PHEV purchases[1].
In summary, Spain’s new-car registration growth in 2025 is robust, largely fueled by the accelerated adoption of electrified vehicles, especially BEVs and plug-in hybrids, supported by government aid and shifting consumer preferences towards electric mobility[1][2][3][4].
[1] ABC [2] Reuters [3] Autocar Espana [4] European Automobile Manufacturers' Association (ACEA)
The growth in Spain's new-car market, particularly in the adoption of electrified vehicles, is not limited to just battery electric vehicles (BEVs) and plug-in hybrids (PHEVs), but also extends to other sectors such as technology and automotive, with the rise of electric mobility. The shift towards electrification in Spain's automotive industry is supported by government initiatives like the Reinicia Auto+ program, as well as financially through interest rate reductions by the European Central Bank.
