Renault considers building next generation of compact electric vehicles in Spain
CEO Francois Provost announced the plan to expand production beyond France to stay competitive. The move targets lower costs against rising Chinese rivals.
Insights:
Renault S.A. confirmed on February 19, 2026, that it is studying a plan to build its next-generation compact electric vehicles at its Palencia plant in Spain 
ES. The proposal, which remains under discussion, would shift a portion of the company’s electric vehicle production outside of France 
FR. This potential adjustment to the company's manufacturing footprint is being considered as part of a broader electric vehicle strategy.
ES. The proposal, which remains under discussion, would shift a portion of the company’s electric vehicle production outside of France FR. This potential adjustment to the company's manufacturing footprint is being considered as part of a broader electric vehicle strategy.The announcement follows the release of the 2025 earnings report for the Renault Group and comes at a time when the automaker is expanding its electric line-up. Francois Provost noted that the study is being conducted amid intensifying competition from low-cost Chinese 
CN EV manufacturers in European markets. The proposal is intended to help the company navigate these market pressures while optimizing its industrial operations.
CN EV manufacturers in European markets. The proposal is intended to help the company navigate these market pressures while optimizing its industrial operations.
