Spain’s automotive manufacturing sector shed direct jobs during the third quarter of 2026, marking a sharper summer contraction than usual even as commercial networks and repair shops pushed overall employment in the motor industry to stable heights, eldiario.es reported.
Factory Lines Slow Down Beyond the Typical Summer Pause
While the third quarter historically coincides with technical shutdowns and summer holidays along vehicle assembly lines, this year's labor pullback cut deeper into the momentum built during the first half of the year.
That figure represents a net loss of 6.68% compared to the 237,900 workers recorded between April and June, when factories posted their best results in five years. On an annual basis, manufacturing employment slipped 1.60% from the 225,600 positions counted in the third quarter of 2025. Under the INE’s newly integrated statistical classification, production roles fell from 241,200 workers in the second quarter to 225,200 in the third, reflecting a summer contraction of 16,000 employees.
Commercial Networks and Workshops Counterbalance the Production Slump
A stark divergence between assembly plants and the retail network prevented a broader crisis across the wider automotive sector. The division encompassing the sale and repair of motor vehicles and motorcycles bucked the manufacturing trend by hitting a new historic record with 389,800 workers.
This commercial segment added 3,900 workers compared to the second quarter and expanded by 18,900 positions—a 5.1% increase—over the 370,900 registered a year earlier. Dealerships and garages continue to absorb labor thanks to the arrival of new Asian operators, particularly distribution networks for Chinese brands, alongside an aging Spanish vehicle fleet that maintains high demand for garage services.
Combined, both divisions accounted for 611,800 direct employees at the close of September 2026. Despite shedding 12,000 jobs from June’s peak of 623,800, total employment remains up 2.56% year-over-year compared to 596,500 in the third quarter of 2025.
Electrification Advances Amid Stagnant Assembly Volumes
The deeper summer adjustment in factories runs parallel to an overall sluggishness in production volumes. Spanish vehicle manufacturing accumulated 1,675,092 units through the first nine months of the year, marking a 1.6% annual decrease. This slowdown was weighed down by a 4.3% drop in passenger car output and flat demand across main European Union export markets.
This employment shift unfolds as plants transition toward strategic electrification projects, including the production of electric models in Martorell, Vitoria, and Navarre, alongside joint operations like Leapmotor’s launch in Figueruelas. Electric and plug-in hybrid vehicles accounted for 18.2% of national production in September, rising 5.9 points from the same month in 2025.
Spanish plants produced 222,304 vehicles in September, dipping 0.5% below the previous year’s figures. The Spanish Association of Automobile and Truck Manufacturers (Anfac) maintains its forecast to close out 2026 with approximately 2.25 million manufactured vehicles, representing a modest 1% decline compared to 2025.
