Spain’s Auto Industry Signals Recovery Amid February Production Increase and Export Growth

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This report covers Spain’s vehicle manufacturing landscape as of early 2023, detailing February output and the year-to-date performance. Plants in Spain produced 226,410 units in February 2023, a 19.7 percent rise from the previous year. The improvement is linked to easing bottlenecks in supply chains, enabling a rebound in production volume. The data and analysis come from the Spanish Association of Automobile and Truck Manufacturers, known as Anfac.

In the first two months of the year, total production reached 420,964 vehicles, up 14.1 percent compared with the same period a year earlier. That pace remains about 15 percent below the January–February total from 2019, the pre-pandemic benchmark. Anfac notes that the automotive sector is in a recovery phase, marking a tenth consecutive month of expansion. Still, intermittent supply disruptions persist and are likely to influence how quickly manufacturers can recover and how export capacity evolves during the year.

Looking at vehicle categories, February saw strong growth in passenger cars and sport utility vehicles, with output rising 17.9 percent over the prior year to 179,289 units. Commercial and industrial vehicles also rose, by 27.1 percent year over year, reaching 47,121 units. Across the first eight weeks of 2023, production of passenger cars and SUVs totaled 329,757 units, up 13.5 percent from the previous year, while commercial and industrial vehicle production increased 16 percent to 91,207 units for the period.

Energy-source breakdown for February shows 41,937 zero- and low-emission vehicles produced, covering fully electric, plug-in hybrids, conventional hybrids, natural gas, and liquefied petroleum gas. This segment represents an 89.8 percent year-over-year gain and accounts for about 18.5 percent of the month’s output. Anfac observed an 7 percent share growth in the emissions quota relative to the previous year. In the same month, gasoline vehicles totalled 125,483, up 18.1 percent, while diesel vehicle output declined by 18.8 percent to 18,273 units.

exports are growing

Exports continued to strengthen in February, with a total of 209,576 vehicles shipped abroad. That figure marks a 29.9 percent year-over-year increase, contributing to an annual export tally of 379,923, up 18.1 percent. Despite the positive export momentum, Anfac cautions that logistics challenges and land and sea transport hurdles still press on the sector and affect overall performance.

When looking at destination markets, approximately 91 percent of February’s production that was destined for export went to Europe, a share that is slightly higher than a year earlier. Key European buyers include France, Germany, Italy, the United Kingdom, and Turkey. Anfac notes that the main European markets could see a rebound in 2023, provided production capacity remains strong enough to meet demand. The organization emphasizes that the industry has started to recover production in the early months of the year but continues to face sporadic supply problems at manufacturing sites. José López-Tafall, managing director of Anfac, underscored this cautious but hopeful outlook.

Some observers warn about potential policy hurdles. The discussion around Euro 7 emissions rules in the European Union raises concerns about the cost burden on manufacturers. Figures from the European Automobile Manufacturers Association and comments from Renault’s chief executive suggest that adopting Euro 7 could entail substantial capital expenditures, estimated around 35 billion euros for the sector. Anfac stresses that accelerating electrification in Spain remains a priority to ease regulatory pressures and preserve production and employment as the industry navigates decarbonization goals through 2035. The general manager of Anfac emphasizes that while production is improving, continued vigilance and strategic investment are needed to sustain momentum in the face of evolving environmental standards.

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