The Renault Group is still evaluating plans to manufacture the next generation of compact electric vehicles at its Palencia, Spain, plant. The company has so far produced all its EVs in factories in France, but that will change in the future.
This was confirmed by Renault CEO François Provost on Thursday, following the announcement of the company’s financial results for 2025. At the Palencia plant, north of Valladolid, the French manufacturer currently produces compact and mid-size models, though only as plug-in hybrids. Specifically, the Renault Austral, Espace, and Rafale are assembled there. The Renault Group opened the Spanish facility in 1978.
ElectriCity and elsewhere
Until now, Renault’s battery-electric vehicles have been produced within the ElectriCity production network, established in 2021. This network consolidates the northern French plants in Douai, Maubeuge, and Ruitz.
Maubeuge serves as the competence center for light commercial vehicles, such as the Renault Berlingo, while battery-electric passenger car models like the Renault 4, Renault 5, and Scenic E-Tech are produced in Douai.
The Renault Twingo E-Tech, however, will be manufactured in Novo Mesto, Slovenia, meaning Renault’s exclusively French battery-electric vehicle production will soon no longer be the case.
Realigning the strategy
François Provost took over as CEO last year from Luca de Meo and has since been realigning the group’s strategic direction. Provost plans to fully reintegrate the spun-off battery-electric vehicle division Ampere back into the group. In December, he halted Mobilize’s car-sharing operations and brought the previously independent unit, along with its remaining activities, back into the group.
Changes also appear to be underway for the Flexis joint venture, which focuses on connected electric vans and was established in collaboration with the Volvo Group and logistics provider CMA CGM. Reports suggest Renault intends to take full control of the venture.
C- and D-segment cars in Spain?
After earlier indications of possible electric car production in Spain, Renault CEO François Provost has now stated that it is ‘likely and logical’ that the Palencia plant will manufacture C-segment electric cars.
“Palencia is our main plant for the C and D segments, and we will continue to invest in these, including in our medium-term plan,” the top manager said at a meeting with journalists, stressing that “Europe has chosen electric vehicles with its regulations, particularly those for 2030. It is therefore ‘logical’ that more factories will switch to electric drivetrains.”
However, Provost pointed out that the internal process has not yet been completed and that the final decision remains subject to operational validation. “Now we must show that the project is on track. I am waiting for the final answer from my Spanish teams to confirm this,” he added.
According to the Spanish portal La Tribuna de Automoción, Renault is unlikely to be referring to a successor to the Megane at the lower end of the C segment.
Instead, the company is reportedly preparing a production plan for two vehicles: the C-segment model is expected to be comparable to today’s Scenic E-Tech, measuring around 4.50 metres in length and offered as both a battery-electric vehicle and a ‘super-hybrid’. The latter is said to feature a pure range-extender drivetrain, as we’ve seen in the Emblème concept car.
The D-segment model is expected to succeed the current Renault Rafale, measuring around 4.70 meters in length.

Spanish influence
The decision of the Renault group to go into manufacturing BEVs in Spain can’t be viewed apart from the fact that one of Provost’s closest collaborators, Josep Maria Recasens, Chief Strategy, Product and Program Management Officer of the group, is also the President of the Spanish vehicle manufacturer’s association ANFAC since mid-2024.
Recently, he has reasserted his belief that the only way to secure Spain’s position as one of the world’s largest automotive producers is to commit decisively to electric mobility. “We are losing 400,000 series-production vehicles in Spain year after year. That effectively means one plant closure per year. If we do not take part in these new electric technologies, we will not remain competitive,” he stated.
As ANFAC President, Recasens will also surely be delighted by the venue of the electric Cupra Raval and VW ID. Polo to Seat’s Martorell plant near Barcelona, and the German decision to produce the SUV-derivatives on the same MEB+ platform, the VW ID. Cross and the Skoda Epiq, in the VW plant in Navarra.


