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Curve of the highway to the destination. Concept of enjoying the trip and the beauty of the landscape| Dealer

News

Spain’s new-car market remains strong as new incentives take shape

February provided plenty of positives for Spain’s new-car market. But as the nation’s market continues to grow, is electrification progressing as planned? Autovista24 web editor James Roberts examines the latest numbers.  February saw a second consecutive month of growth for the buoyant Spanish new-car market. In total, 97,082 new vehicles took to the country’s roads, 6,755 more than 12 months prior. This ensured a 7.5% year-on-year increase, according to the latest ANFAC data. With only December 2025 blotting an unbroken streak of year-on-year gains for Spain’s new-car market, February resumed a familiar trend. Industry body ANFAC highlighted that all channels achieved growth in the month, particularly the rental sector, which saw a 22.6% uptick. ‘After a hesitant start in January, February is once again a positive month for vehicle sales,’ stated Félix García, director of communication and marketing at ANFAC.‘Last month, the rental car channel was the one that grew the most, accounting for almost one in five sales of passenger cars. It is a logical increase to renew the fleet for the Easter period. Without these sales, the growth of individuals and companies is flatter compared to February 2025.’ This ‘good pace,’ as highlighted by ANFAC, prevailed when assessing the first two months of 2026. Combined January and February totals amounted to 170,185 passenger cars. This ensured a unit upswing of 7,542 compared with the same period in 2025, a healthy 4.6% boost. Hybrids remain top new-car choice Hybrids, made up of both full and mild hybrid powertrains, remained the top seller in February. In total, 46,592 new hybrids joined Spain’s car parc in the month, according to ANFAC. This robust total returned a 17.1% year-on-year increase and a 48% market share. This was just 0.6 percentage points (pp) down on January’s record, suggesting hybrid popularity is not ebbing. It was even up by 3.9pp year on year. Spanning the opening two months of 2026, hybrid cars held a dominant 48.3% market share, up 3.7pp year on year. Across January and February, 82,189 new hybrids made their way to customers in Spain. Spain’s BEV market share issue Amid this preference for hybrids, ANFAC highlighted that EVs, including battery-electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs), continue to be a ‘key segment.’ However, is this consistently strong sector in danger of stagnating, especially when it comes to BEV uptake?   February saw 8,889 new BEVs take to Spain’s roads. This equated to a 45.4% volume increase, carving out a 9.2% market share, up 2.4pp. After two months of the year, the BEV market share stood at 9%, 2.2pp up year on year. This comes as volumes reached 15,361 units, establishing a 38.1% year-on-year upswing. One reason for new-BEV buying reticence could be uncertainty. Spain’s relatively successful trend of EV adoption had been enabled by a long-standing incentive framework, the MOVES plan. This was introduced in 2019, funded by the EU’s NextGenerationEU recovery funds, and managed in conjunction with Spain’s regional governments.  The issue with incentives The last iteration, MOVES III, came to an end on 31 December 2025. Its replacement, the Auto 2030 Plan (Auto+), announced at the beginning of December, aims to centralise and simplify EV incentives. It will mobilise up to €400 million in public and private investment between 2026 and 2030 to increase electrification in Spain. It will offer varying discounts on BEVs and PHEVs, spanning direct purchases, leasing and renting arrangements. The subsidies will be applied retroactively to vehicles purchased since 1 January in Spain. However, the government website has not yet confirmed publication. According to Carwow, Full implementation of the Auto 2030 Plan is not expected until at least May this year.  In late January, the Ministry of Economy, Trade and Business proposed amendments to the Auto 2030 Plan, according to La Tribuna. Addressing industry concerns, the change reportedly re-centres the scheme around cars manufactured within the EU. This would make the plan more closely aligned with the system used in France, as reported by electrive. One result of the amendments could be the discouragement of some models made in China from eligibility. This could bring additional uncertainty into the market. An added complication relates to Chinese carmakers investing in Spanish manufacturing, such as Chery and BYD. Spain’s need for clarity ‘Although the Auto+ plan has already been announced, and there are brands that have committed to bringing forward the discounts, there is no doubt that the official publication of clear and agile regulatory bases is essential to increase confidence,’ stated Tania Puche, GANVAM’s director of communication. Raúl Morales, communications director of FACONAUTO, added: ‘For another month, electrification has driven the market, once again exceeding 20% ​​market share in new registrations. This is partly due to the announcement of the retroactive application of the Auto+ Plan, which provides aid to electric vehicles. ‘What we need now is for the regulatory framework for this plan to be published as soon as possible, so that buyers continue to have certainty and electrification can continue to increase its registration numbers,’ he continued. Whatever the outcome, industry bodies are urging further clarity around electrification uptake measures to boost sales in the country. ‘It is urgent to reactivate the tax deduction in personal income tax for the purchase of electric vehicles and the bonus for the installation of charging points, measures that have been overturned in congress for the second time in two months,’ Puche stated. PHEVs still proving popular As BEV uptake looks to push through to new heights, PHEV popularity has helped lift Spain’s overall plug-in sector. Since a notable triple-digit percentage volume surge in May 2025, the powertrain has continued to sell well. In February, 12,092 new PHEVs left forecourts in Spain, equating to a 75.2% year-on-year increase. Across the first two months of this year, PHEVs have seen 20,832 registrations and a 71.6% volume lift. This has ensured a 12.2% market share, up 4.7pp year on year. This strong start to 2026 and the enduring appeal of the powertrain have boosted overall plug-in deliveries. Spanning January and February, combined BEV and PHEV registrations reached 36,193 units. This marked a significant year-on-year climb of 55.6%. This also brought some meaningful market share capture, with the powertrains accounting for 21.3% of overall registrations, up 7.2pp. The combination of electrified registrations, including hybrids, BEVs and PHEVs, took the dominant slice of the Spanish new-car market. Across the opening two months of 2026, a total of 118,382 new electrified vehicles were registered in the country. This 23.7% upswing ensured a market share of 69.6%, a new high, and a 10.7pp increase. Petrol remains a key player With many headlines surrounding EV volume growth, it is easy to ignore the prevailing appeal of petrol within Spain. At first glance, sales have taken a year-on-year nosedive. Fewer new petrol-powered options are available as the industry moves towards net-zero. However, when it comes to market share, the fuel type is clinging on in Spain. In February, 22,534 new petrol vehicles reached customers, a 19.5% year-on-year dip. Although this continued the trend of double-digit monthly declines, the reality is more nuanced. Combining January and February’s new-car registration totals, petrol accounted for 23% of the market, with 39,067 registrations. Although volumes were down 20.8% year on year, the fuel type commanded the second-highest market share after hybrids. Petrol was 14pp higher than BEVs, and 10.8pp above PHEVs. While petrol retained influence in Spain’s new-car market, diesel continued its descent. The fuel type saw just 7,226 new vehicles registered across January and February. This underlined a significant 28.6% year-on-year drop and a meagre 4.2% market share, down 2pp. Total internal-combustion engine (ICE) new-vehicle registrations, including petrol and diesel, totalled 46,293 in January and February. This provided a 27.2% market share, down 9.3pp year on year, but still 5.9pp above EVs. One of the big questions now is whether plug-in sales will overtake ICE volumes in Spain this year.
Agent signs a contract for the purchase or Leasing of a new car. New car keys in the foreground. Dealers

News

What is car financing?

Car financing is key to the automotive ecosystem. It can heavily influence how cars are bought and sold, plus, it provides consumers with multiple purchasing options. But what exactly is it? Tom Hooker, Autovista24 journalist, explains how the process works from start to finish. Finding a vehicle purchase can be difficult for buyers. Car financing allows customers to possess a vehicle without paying for its full value upfront. It converts a large, one-off purchase into a series of predictable payments. In turn, it plays a vital role in how cars are priced, sold, and managed across the automotive industry. https://www.youtube.com/watch?v=wZqEZdeIVUk Car financing simultaneously prices the value of the vehicle today and its forecast residual value (RV). It also determines the cost and risk of lending money over time. The payment method links the car itself to an agreement. This sets how the car is paid for, who takes on the financial risk and who earns money from the deal. Furthermore, it establishes when the value of the car is recovered. This could be retrieved upfront, gradually through monthly payments, or at the end of the contract. Why does car financing exist? For many consumers, tying up money in a depreciating asset may not be a desirable financial decision. Car financing solves this by spreading the cost over time. It aligns payments with consumer income, usage, and expected vehicle depreciation. Meanwhile, for manufacturers and dealers, it can support consistent demand. Customers may be more willing to buy when monthly payments feel manageable, instead of paying one lump sum. This can allow dealers to sell higher-value vehicles and avoid sales declines. It can also enable them to have more influence over what models customers choose through finance offers. From a commercial standpoint, car financing is a framework made up of different structures that allocate risk in different ways. Some finance products prioritise ownership, while others prioritise usage. Sometimes, RV risk sits with the lender, and in other cases, it remains with the customer. These RVs directly influence pricing competitiveness, profitability, and used-car market performance. Accurate RV forecasting can support lower monthly payments and healthier margins. Conversely, poor forecasting could lead to stock imbalances or value erosion later in the vehicle lifecycle. Where do finance and insurance fit in? In most retail transactions, the finance product is sold by the dealer on behalf of a finance provider. Some finance providers are captives, and others are independent finance houses. These providers supply the funding that allows dealers to present finance agreements to customers. Once a customer has chosen a vehicle, the focus shifts to the design of the finance agreement. This turns the vehicle price into a specific, personalised offer. This stage aims to bring everything together into a single agreement. The contract must meet lender requirements and comply with regulations. Clarity is particularly important, as this part of the process is often unfamiliar to customers. Ultimately, car financing can influence which vehicles sell and how often customers return to dealerships. It also plays a vital role in residual value management and how risk is distributed across the automotive ecosystem. As vehicle prices rise, financing could play an increasingly important role in shaping the automotive industry.

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