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VW Begins Production of ID. Polo and Cupra Raval in Spain

Spain's lower costs, state incentives plus cheap solar power let VW start a phased rollout that will add base, cheaper trims later this year.

Overview

  • VW started series production of the ID. Polo and Cupra Raval at Seat’s Martorell plant on Wednesday, June 3, with CEO Oliver Blume and Spanish prime minister Pedro Sánchez attending the launch.
  • The first cars off the line are higher‑spec models with larger batteries selling for well over €30,000, while VW says base versions — the ID. Polo from just under €25,000 and the Cupra about €1,000 higher — will be orderable in July and delivered from September.
  • The group and its suppliers have invested about €10 billion in Spain since 2023, including roughly €3 billion to convert Martorell, with the site planned to reach capacity of up to about 300,000 EVs per year and linked regional battery projects under way.
  • VW moved production to Spain to cut costs by using lower assembly wages, near‑site battery work powered by cheap solar energy, and almost €400 million in public support, while German plants will focus on more complex, higher‑margin models.
  • The rollout aims to help VW defend volume share against cheaper Chinese and European entry EVs, but it may heighten pricing pressure and expose gaps in Spanish charging infrastructure and consumer uptake that could limit near‑term demand.