Renault is evaluating plans to manufacture future compact battery-electric vehicles at its Palencia plant in Spain, a move that would mark a significant expansion of EV production beyond its traditional base in France.
Chief Executive François Provost confirmed the review following the company’s 2025 financial results, saying the site north of Valladolid could play a role in the group’s medium-term electrification strategy. The factory currently produces plug-in hybrid versions of the Austral, Espace and Rafale models and has operated since 1978.
Until now, Renault has concentrated most electric vehicle production within its ElectriCity network in northern France, which includes plants in Douai, Maubeuge and Ruitz. Passenger EVs such as the Renault 4, Renault 5 and Scenic E-Tech are assembled in Douai, while Maubeuge focuses on electric light commercial vehicles. However, upcoming models—including the Twingo E-Tech to be built in Slovenia—signal a broader geographic distribution of EV manufacturing.
Provost, who succeeded Luca de Meo as CEO last year, has been reshaping the group’s operations, including reintegrating the Ampere electric division and scaling back certain projects initiated under his predecessor. He indicated that producing electric vehicles in Spain would align with regulatory trends and the plant’s existing role in the C and D vehicle segments.
“Palencia is our main plant for the C and D segments, and we will continue to invest in these,” Provost said, adding that Europe’s regulatory framework makes a transition toward electric drivetrains “logical.” He cautioned, however, that a final decision depends on internal evaluations. “Now we must show that the project is on track. I am waiting for the final answer from my Spanish teams to confirm this.”
Industry reports suggest Renault may be considering two new models for the facility: a C-segment vehicle roughly comparable in size to the Scenic E-Tech and a larger D-segment model potentially replacing the Rafale. The C-segment model could be offered both as a battery-electric vehicle and as a range-extended hybrid, reflecting uncertainty over market demand and infrastructure readiness.
If approved, the shift would represent a departure from Renault’s previous strategy of concentrating EV production in France. It would also reinforce Spain’s role as a major automotive manufacturing hub in Europe, particularly for electrified vehicles.
The company has not disclosed a timeline for a final decision or for potential production start dates. Analysts note that expanding EV manufacturing capacity across multiple countries may help Renault manage costs, supply chains and regulatory requirements as competition intensifies in the European electric vehicle market.
Source: La Tribuna de Automoción, Reuters