Spain returns to new-car market growth, but is trouble ahead?

09 February 2026

Spain was the most impressive new-car market of Europe’s big five last year and started 2026 with growth. But behind the positivity, is there a volume challenge ahead? Autovista24 special content editor Phil Curry examines the data.

Spain’s new-car market resumed its upward trajectory after a stumble in December. The country saw 73,103 registrations in January, according to industry association ANFAC.

This represented a 1% increase compared to 12 months prior. Despite the slow growth, however, it displays promising signs for the market. In January 2025, new-car deliveries were boosted by replacement schemes. This was in the wake of Storm Dana, which hit the country at the end of 2024.

ANFAC states the relief programme saw an additional 3,995 units delivered in the first month of 2025, funded through the Reinicia Auto Plan. Excluding these registrations from the January 2025 figures would have resulted in a 6.8% improvement last month.

Uncertainty ahead for Spain?

However, the country’s new-car market is also facing uncertainty. New incentive plans for electric vehicle (EV) purchases are yet to be finalised. The former MOVES III subsidies drove plug-in sales and the overall market forward in 2025.

Until incentives are implemented, this may place pressure on volumes.

A delay in activating EV subsidies could hinder the private sector, where buyers can be more price sensitive. While EV list prices declined in 2025, they remained more expensive than ICE models on average in Spain, according to Ganvam.

The private channel did see registrations decline by 6.4% year on year to 35,775 units in January. Business sales fall by 2.4% in January, with 27,312 deliveries. Only sales to rental companies saw an increase, with volumes up 63.5% to 10,016 units.

‘It is true that rental car purchases have been key, but private buyers are also holding strong,’ outlined Félix García, director of communications and marketing at ANFAC.

‘We in the sector insist that there is currently no support whatsoever for electric vehicles. The Auto+ Plan has not been published, nor is the extension of the 15% income tax deduction for the purchase of an electric vehicle in effect,’ he continued.

‘It is necessary to provide certainty to the market and consolidate the transformation towards electromobility. It is an unstoppable trend, as can be seen in the fact that diesel’s market share is steadily declining and was below 5% [in January].’

Trouble ahead for BEVs in Spain?

Registrations of battery-electric vehicles (BEVs) increased by 26.9% in January, reaching 6,472 units. This was enough for an 8.9% market share, up by 1.8 percentage points (pp) according to Autovista24 calculations.

BEV deliveries were boosted by the reintroduction of MOVES III in 2025. Between May and August, the powertrain saw triple-digit percentage improvements. Double-digit rises followed since then.

In January, the market was due to hear a funding criteria announcement for the new Plan Auto+, which was first unveiled in December 2025. This was expected to set out how Spain’s central government will handle the expected €400 million subsidy scheme.

However, the European Alternative Fuels Observatory noted that industry stakeholders have highlighted ongoing uncertainties. These centre on the environmental criteria for determining eligibility. Electrive reported that Spain’s Ministry of Economic Affairs want to adopt a system similar to France’s current EV incentives.

This would calculate the entire carbon footprint of a vehicle. It also means that models built outside of the EU would be ineligible for funding, according to La Tribuna de Automoción.

The debate around the criteria of the plan has stalled the official approval and publication. This could impact BEV sales and registrations going forward. Drivers may wait to see what financial aid will be offered, and which brands and models it will apply to.

‘The lack of a support plan for the purchase of electric vehicles has discouraged many sales and prevented the generation of orders for the coming months,’ confirmed Raúl Morales, communications director of Spanish dealer body Fanonauto.

‘That is why it is so important that the details of this plan, especially the amounts and their retroactive application, are communicated as soon as possible. This will give buyers confidence and allow us to overcome the market stagnation we are already seeing in January,’ explained Morales.

PHEVs continue forward

The plug-in hybrid (PHEV) market continued its strong growth in January. In total, 8,740 units were delivered to customers, a rise of 66.7% year on year.

This gave the powertrain a 12% market share, up by 4.8pp year on year. While this was a good result, January marked the first time since April 2025 that volumes missed triple-digit percentage growth.

The confusion around the Plan Auto+ scheme does seem to be impacting the market. Morales highlighted that many registrations in January came from sales in December. This was during the MOVES III period, which ceased on the last day of 2025.

It seems that the market relied on the previous incentive scheme to uphold volumes last month. Yet, as these sales coast out, there could be problems ahead for the market. The industry is likely hoping for a quick resolution to the bottleneck holding up the latest incentives.

Combining BEV and PHEV registrations, the EV market recorded a total of 15,212 deliveries in January. This was an increase of 47.1% compared to 12 months prior, according to Autovista24 calculations. The technology saw a market share of 20.8%.

Spain’s ICE slide continues

Petrol’s slump continued into January, as buyers continued to move away from the powertrain. A total of 16,533 units were delivered in the month, a decrease of 22.5% year on year.

The fuel type accounted for 22.6% of overall volumes, a drop of 6.8pp year on year. However, despite this fall, it is still comfortably the second-best powertrain after hybrids.

Meanwhile, diesel registrations fell by 33.7%, as just 3,299 units took to Spanish roads. This was enough for a 4.5% market share, down by 2.4pp.

Combined, the internal-combustion engine (ICE) market dropped by 24.6% compared to January 2025, according to Autovista24 calculations. The technology’s market share also fell closer to EVs’ hold, reaching 27.1% in the month. This was a fall of 9.2pp and meant the gap between the two groups was just 6.3pp.

Hybrid dominates new-car share

The hybrid market, made up of both full and mild hybrid powertrains, achieved an 8.9% improvement, according to Autovista24 calculations. This gave the technology a 48.7% market share, a rise of 3.6pp.

Adding hybrids to the EV total, registrations of electrified models increased by 18.1%, based on Autovista24 analysis of available data. This led to a 69.5% market share, up 10.1pp.

However, Spain’s new-car market must be prepared for the impact of incentive uncertainty. With no EV subsidies currently in place, the market’s performance remains in question.