Spain boosts electric‑vehicle push with Mercedes‑Benz €1 bn Vitoria plant

Spanish Industry Minister Jordi Hereu said the shift to electric cars is already underway, noting a 45 % rise in sales of electrified passenger vehicles this year and that EVs became the second‑most popular purchase option for Spaniards. He highlighted the launch of series production of the new Mercedes‑Benz VLE at the Vitoria factory, an investment of €1 billion backed by the Spanish and Basque governments through public‑private initiatives that contributed more than €157 million.

The minister stressed the automotive sector’s importance to the Spanish economy – around 11 % of GDP, 18 % of exports and 9 % of employment – and pointed to the broader “Plan España Auto 2030” which aims to raise the sector’s added value to €120 billion. The plan also acknowledges challenges such as supply‑chain bottlenecks, semiconductor shortages and the need for a structural shift toward technology, digital platforms and new skills to sustain the electric‑vehicle transition.