21:03 25-02-2026

Renault considers Spain for compact electric vehicle production

Renault is evaluating Spain, specifically the Palencia plant, for manufacturing future C-segment electric models from 2028 to enhance competitiveness in the EV market.

Renault is rethinking its strategy for producing compact electric vehicles and considering Spain as a new production site for such models. The company's CEO, François Provost, indicated there is a high likelihood that the Palencia plant will manufacture future C-segment electric models, though a final decision has not yet been made.

So far, Renault's electric cars have been manufactured exclusively in France. Faced with increasing competition from Chinese manufacturers and stricter EU climate targets by 2030, the company is evaluating an expansion of its production base. According to management, Spanish facilities show stable quality and lower costs compared to the pre-pandemic period.

Industry sources suggest that from 2028, two models could start production in Palencia. The first is a fully electric C-segment vehicle, about 4.5 meters long, comparable to the next-generation Scenic E-Tech. An EREV version is also under consideration. The second model is a new-generation Rafale D-segment with a plug-in hybrid setup. Potential production volume is estimated at around 184,000 units per year.

Currently, the plant produces the Austral, Espace, and Rafale. The decision to launch electric vehicles depends on internal approvals and negotiations over a new tariff agreement in Spain. Overall, this move could give Renault's new cars from 2026 onward a broader production footprint in Europe, which should boost its competitiveness amid the global shift to electrification.