# Chinese automotive investment and trade in Spain > Live situation record from CLSTR: https://clstr.news/situations/chinese-automotive-investment-in-spain > Updated: 2026-08-19T15:58:28.000Z. Sources: 32. Developments: 4. Spain continues to solidify its position as a primary European hub for Chinese automotive investment. Recent developments include SAIC Motor receiving clearance from the Spanish Ministry of Defense to invest 200 million euros in a new facility in Ferrol, Galicia. Furthermore, the joint venture between Ford and Geely in Valencia is progressing toward its scheduled start of operations in 2027. New industrial activity is also emerging in Andalusia, where the Chinese automaker BAIC, in partnership with Santa Motors, is set to launch a plant in Jaén, a region where manufacturing facilities had been closed for over a decade. To navigate European Union tariffs on Chinese-made electric vehicles, manufacturers including MG, Chery, and Geely are utilizing local assembly in Spain to reclassify products and avoid certain import duties. This strategic shift has seen Chinese investment in the Spanish automotive sector rise from 149 million to 643 million euros. However, this expansion faces logistical and economic challenges. In the Netherlands, the insurer Univé has restricted coverage for certain Chinese brands due to difficulties in sourcing spare parts. In Spain, the influx of affordable models has contributed to a 4.2% decrease in the average price of used cars aged two to five years. Furthermore, while the Spanish government pursues close commercial ties with Beijing, China has overtaken Germany as Spain’s primary supplier of goods, leading to a significant trade deficit that reached 22,599 million euros between January and June. This growing imbalance has raised concerns among experts and EU officials regarding a lack of reciprocity. ## Claims - Chinese vehicle imports are contributing to the stagnation of domestic automotive production in Mexico. (corroborated by 3 sources) - Two-thirds of vehicles sold in Mexico are imported from China. (corroborated by 3 sources) - The Spanish Ministry of Defense approved the SAIC manufacturing project in Ferrol despite initial security concerns. (corroborated by 3 sources) - SAIC Motor plans to invest 200 million euros in its first phase to establish a factory in Ferrol, Spain. (corroborated by 2 sources) - Hesai Group has seen higher orders for LiDAR sensors this year compared to the same period last year. (corroborated by 2 sources) - The Dutch insurer Univé has excluded certain Chinese car brands from its policies due to difficulties in sourcing spare parts. (corroborated by 2 sources) - Ford and Geely formed a joint venture for the Almussafes plant in Valencia, starting operations in 2027. (single source) - Chinese car brands achieved a 107 percent increase in European deliveries during the first half of 2026. (single source) - The BYD Seal U DM-i became the top-selling plug-in hybrid in Poland, with 2,906 units registered in the year. (single source) - Toyota's plant in Kolín, Czech Republic, reported a net profit drop to 713 million crowns despite rising revenues. (single source) - In mainland China, 27 per cent of new cars priced between 150,000 and 200,000 yuan were fitted with LiDARs in the first quarter of 2026. (single source) - Chinese automakers are accelerating internationalization due to slowing domestic demand and intense price wars. (single source) ## Timeline ### 2026-08-19: Spain attracts Chinese automotive investment amid rising trade deficit Spain is attracting Chinese automotive investment to serve the European market, even as its trade deficit with China grows and China replaces Germany as its top goods supplier. 3 sources. https://clstr.news/cluster/spain-attracts-chinese-automotive-investment-amid-rising-trade-deficit ### 2026-08-18: Chinese automakers expand European presence amid tariff and logistics challenges Chinese automakers are expanding in Europe through local assembly to avoid tariffs, while facing challenges like spare part shortages and impacting used car prices in markets like Spain. 13 sources. https://clstr.news/cluster/chinese-automakers-expand-global-reach-and-use-spanish-assembly-to-bypass-eu-tariffs ### 2026-08-16: Automotive industry faces shift as Chinese brands expand in Europe and Mexico Chinese automotive brands are rapidly expanding in Europe and Mexico, driving market shifts through increased imports and new manufacturing investments in Spain, while local industries face growing competition. 17 sources. https://clstr.news/cluster/spain-becomes-a-major-european-hub-for-chinese-automotive-investment ### 2026-08-02: Spain pushes EU investment rules amid surge of Chinese auto projects Spain is courting Chinese EV and battery makers, hosting projects from Leapmotor, CATL and SAIC, while urging the EU to adopt uniform foreign‑investment rules to protect European industry. 3 sources. https://clstr.news/cluster/spain-pushes-eu-investment-rules-amid-surge-of-chinese-auto-projects --- Cite as: Chinese automotive investment and trade in Spain. CLSTR, https://clstr.news/situations/chinese-automotive-investment-in-spain