Renault has announced a major investment of 600 million euros in Spain by 2030, aimed at producing five new car models, including two electric vehicles. This is the first major investment by the French automaker in Spain in 75 years of its presence in the country. The funding will come from a mix of Renault’s own resources and public subsidies from national and regional governments. Christian Stein, director of Renault Group Spain, expressed enthusiasm about this "new stage" for the company, even as the automotive industry faces a difficult period globally. The new models will be produced at Renault’s factories in Valladolid and Palencia. The company currently operates in several Spanish cities, including Madrid, Seville, and Palencia, and has a network of 482 sales and service points across the country. It sells three brands: Renault, Dacia, and Alpine. In 2025, Renault sold nearly 175,000 vehicles in Spain, making it the third-largest market for the company in Europe. The automotive sector in Europe is currently facing a tough environment, with factories operating at only about 50% of their capacity. This is due to a combination of factors, including fierce competition from Chinese automakers and a general slowdown in the industry. Spain, which is the second-largest car producer in Europe, is an important location for foreign car manufacturers. Many choose to produce locally to avoid high European tariffs and to comply with the European Commission’s push for "made in Europe" products that are environmentally friendly. Recent months have seen other major automakers also making strategic moves in Spain. In July, Ford announced a joint venture with the Chinese company Geely to produce four new models at its struggling plant in Valencia. This follows Stellantis’ decision in May to sell part of its Madrid assembly plant to its Chinese partner, Leapmotor. Spain, as the fourth-largest economy in the eurozone, is known for its strong service sector, particularly tourism, but also has a robust industrial base. In 2025, the country assembled 1.77 million cars, placing it second in Europe behind Germany.