Spain’s new-car market posted its first year-on-year decline in five months during May, ending a period of steady gains.
The country registered 111,894 new passenger cars last month, a 0.8% decrease from May 2025, according to data compiled by Autovista24 from industry groups Faconauto and ANFAC. While modest, the drop interrupted a streak that had lifted the market 5.8% in the first five months of the year.
EV incentives delayed, demand still growing
Spain’s government replaced its MOVES III EV subsidy program with the Auto Plan+ in December, but the new rules have yet to take effect. Incentives will apply retroactively to January 2026, though full details remain unclear, leaving buyers and dealers uncertain.
José López-Tafall, director general of ANFAC, the country’s automaker association, stated that Spain is investing heavily in electrification. “The Auto+ plan should not be delayed any longer. It is an essential tool to boost demand and help citizens access electrified mobility.”
Battery-electric vehicle registrations rose 34.4% in May, reaching 12,049 units. That pushed their market share to 10.8%, up 2.9 points from a year earlier. Plug-in hybrids grew 6.6%, the slowest rate of 2026, but still claimed 12.3% of the market.
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From January to May, BEVs increased 39.9%, with 48,998 units sold, while PHEVs climbed 46.7% to 62,388. Together, plug-in vehicles now represent 21.5% of the new-car market, a 5.7-point rise from 2025—but only a 0.7-point gain since January.
Plug-in market share stagnation
Despite healthy sales, the plug-in market share of BEV and PHEV volumes proved static in Spain between January and May. Combined, 111,386 new BEVs and PHEVs joined Spain’s roads in the first five months of 2026. This 43.6% year-on-year surge reflects an increase in electrified model options on the market and incentivisation.
The transition has been swift, yet plug-in vehicles still trail other powertrains. Closing that gap may hinge on how quickly the government finalizes the Auto Plan+.
The market remains positive for the year, but May’s decline signals potential instability. If the Auto Plan+ launches without further delays, the country could recover its momentum. Otherwise, the slowdown may extend beyond a single month.
López-Tafall noted that the stakes involve more than sales. “The future of our industry depends on electrification,” he said. “This is the moment to decide if we want to be a market or also a strong industrial hub in Europe.”