SEAT and Volkswagen are concerned about the low demand for electric cars in Spain

The CEO of SEAT and CUPRA, Wayne Griffiths, has issued a warning, stating that the low demand for electric vehicles in Spain—where they barely achieved a share of 5.6% last year, almost ten percentage points below the European average—could have an impact on the workload of the battery gigafactory that the Volkswagen Group plans to build in Sagunto, Valencia.

SEAT and Volkswagen

PowerCo, the conglomerate’s battery branch, has committed to investing €3 billion in the project; work has already begun. The facilities are expected to provide up to 30,000 indirect employees and to directly employ over 3,000 people when they start constructing cells in 2026.

All energy needed will come from sustainable sources, including a recently constructed 250-hectare solar park nearby. PowerCo stated a few months ago that although its maximum capacity was initially intended to be 40 GWh annually, it might eventually be increased to 60 GWh, which is 50% more than anticipated.

The Landaben (Navarra) and Martorell (Barcelona) facilities, which are start producing electric cars next year will receive their battery supply from Sagunto. The first center will create two urban SUVs for the Skoda and Volkswagen brands, while the second will create the utility cars Volkswagen ID.2 and CUPRA Raval, which are the thermal Ibiza and Polo’s equivalents.

Spain is at the bottom of Europe in terms of electrification

These audacious goals stand in stark contrast to the Spanish market’s lackluster attitude towards electric vehicles. Nearly half of the vehicles produced will be electric starting next year. I’m concerned since there is still no market for it in Spain.

SEAT and Volkswagen

That is also because few electric cars are within the budget of the Spanish buyer, who spends, on average, less than 28,000 euros on a new automobile. “I’m concerned. I’ll produce electric automobiles next year, but for what purpose? if their share of the market is merely 5%.”

We brought you news of the CUPRA Born’s notable price reduction. The 58 and 77 kWh models cost 34,990 and 38,160 euros, respectively right now. When the MOVES III Plan’s assistance is taken into account, their respective values stay at 27,990 and 31,160 euros.

In light of the demands of the industry, as subsidies currently take more than a year to be collected, President of the Government Pedro Sánchez declared during the IV annual forum of ANFAC (Spanish Association of Automobile and Truck Manufacturers) “Together towards the future” that significant improvements will be made to the program in the upcoming weeks.

Source- Automotive News Europe

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