Spain's People's Party demands industrial policy reform amid SEAT uncertainty

Alberto Nadal, the People's Party (PP) Vice Secretary for Economy and Sustainable Development, has called for a profound reform of Spain's automotive industrial policy. This demand follows growing uncertainty regarding the future of the SEAT brand, which Nadal describes as a warning sign of the sector's declining competitiveness.

According to data from ANFAC, vehicle production in Spain fell by 1.7% in the first half of 2026, while exports decreased by 3.3%. Furthermore, the automotive trade balance saw a significant reduction of 84.1%.

The PP identified three primary obstacles hindering Spanish factories: high energy costs and administrative hurdles, delays and design flaws in government aid programs such as PERTE VEC and Auto+, and regulatory rigidity in Brussels regarding the 2035 ban on combustion engines. Nadal emphasized that while the party supports SEAT, its workers, and suppliers, the issue represents a broader industrial battle to ensure Spain remains a European automotive power.