Spain Electric Vehicle Tires Market - Strategic Insights and Forecasts (2025-2030)

Description

Spain Electric Vehicle Tires Market is anticipated to expand at a high CAGR over the forecast period.

Spain Electric Vehicle Tires Market Key Highlights

• The extension of Spain's MOVES III incentive program until December 31, 2025, and the approval of a 15% income tax deduction for EV purchases directly catalyze demand for new EV-specific tires by increasing the volume of electric vehicles on the road.
• Plug-in Hybrid Electric Vehicles (PHEVs) demonstrated a significant market preference in Spain, a trend that directly fuels demand for tires optimized for dual-powertrain performance.
• The continued Original Equipment Manufacturer (OEM) supply by major tire producers like Hankook to premium EV brands, including Porsche, Audi, and BMW, reinforces the market's shift toward high-value, large-rim-size (18-inch and above) tires.
• Regulatory mandates at the EU level, such as the 2025 target for vehicle manufacturers to reduce emissions by 15% compared to 2021, make low-rolling-resistance (LRR) EV tires an engineering imperative, fundamentally altering the OEM demand specifications within the Spanish automotive manufacturing base.

The Spanish Electric Vehicle (EV) Tires Market operates at the intersection of evolving government policy and fundamental shifts in automotive technology. Despite an overall challenging year in 2024 for electrified vehicle registrations, key segments demonstrated robust growth, culminating in December 2024 registering an increase of 21.1% year-on-year. This late-year momentum, alongside a cumulative 7.8% increase in Battery Electric Vehicle (BEV) passenger car sales in 2024, establishes a critical foundation for sustained tire demand. The unique needs of electric vehicles—specifically, managing the instant torque, heavier battery weight, and minimizing road noise—compel a distinct product category separate from traditional Internal Combustion Engine (ICE) tires, creating a specialized and high-growth market for purpose-built EV tires across the Iberian Peninsula.

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Spain Electric Vehicle Tires Market Analysis

Growth Drivers

Government incentives and EU emission targets are the primary catalysts propelling tire demand. The continuation of the MOVES III program, offering subsidies up to €7,000 for EV purchases, directly drives the increase in the Spanish EV fleet, thus expanding the total addressable market (TAM) for both OEM and Aftermarket EV tires. Simultaneously, the EU's mandated 15% reduction in CO2 emissions for new cars from 2025 on is forcing automotive manufacturers in Spain to prioritize specialized, low-rolling-resistance tires to meet compliance, thereby increasing demand for premium, highly engineered OEM products. The rise in BEV passenger car registrations provides a foundational demand increase for replacement tires.

Challenges and Opportunities

A significant challenge remains the inconsistent growth across vehicle segments, where sharp declines in electric vans and electric motorcycles in 2024 restrict the overall expansion of the commercial EV tire market. This instability creates planning complexity for tire manufacturers. However, a major opportunity lies in the burgeoning PHEV segment, which witnessed an increase in registrations in the first nine months of 2025. This surge creates a distinct demand for tires optimized for both electric and combustion propulsion, offering a crucial market entry point for mid-tier performance lines. Furthermore, the push for smart and connected tires, such as the Pirelli Cyber™ Tyre, presents a high-margin opportunity to integrate real-time data and safety features, shifting the value proposition beyond mere physical performance.

Raw Material and Pricing Analysis

The Electric Vehicle Tire Market, being a physical product, is intrinsically linked to global commodity price volatility. The key raw materials include natural rubber, synthetic rubber (derived from petrochemicals), specialized carbon black, and silica for improved rolling resistance. Global price declines in essential EV materials, such as a 75% drop in lithium spot prices and over 30% in nickel and cobalt in 2024, signal broader cost pressures easing across the entire EV supply chain, including potential reductions in the cost of high-performance synthetic rubber components. However, the geographic concentration of raw material refinement, particularly China's significant share in processing, introduces supply chain vulnerability that impacts price stability and necessitates dual-sourcing strategies to protect against geopolitical and trade restrictions.

Supply Chain Analysis

The global EV tire supply chain is characterized by a high degree of vertical integration among top-tier manufacturers and a reliance on complex, long-distance logistics. Production hubs are strategically located across Asia (e.g., Korea, Japan, China), North America (US facilities), and key European sites (e.g., Hungary for Hankook). Logistical complexities stem from the large volume and weight of tire shipments, necessitating robust ocean and rail freight capacity. The Spanish market is particularly reliant on the European manufacturing bases for Just-In-Time (JIT) OEM delivery to local automotive plants and for efficient aftermarket replenishment. The dependency on Class 1 nickel and specialized graphite from a few dominant producing regions introduces a material dependency risk for high-performance EV tire compounds.

Government Regulations

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In-Depth Segment Analysis

By Propulsion Type: Plug-in Hybrid Electric Vehicle (PHEV)

The Plug-in Hybrid Electric Vehicle (PHEV) segment represents a high-velocity, high-growth demand vector in the Spanish EV tire market, driven by a surge in registrations in the first nine months of 2025. This segment's unique operating profile, which alternates between electric-only and combustion modes, creates a specific growth driver for tires engineered for versatility and dual-performance characteristics. Unlike pure BEV tires focused solely on low rolling resistance (LRR) and load capacity, PHEV tires must manage the higher speed and heat generated during sustained ICE operation while still delivering adequate LRR for electric range efficiency. This translates into increased demand for hybrid-compound tires with reinforced construction to withstand the dual stress of an electric motor's instant torque and a gasoline engine's heat. The preference for PHEVs among Spanish consumers, who value range flexibility and lower initial purchase cost, ensures a sustained and distinct growth curve for this nuanced tire category, significantly impacting the aftermarket as these first-generation vehicles begin to require replacement sets.

By Sales Channel: Original Equipment Manufacturer (OEM)

The Original Equipment Manufacturer (OEM) channel is the primary gatekeeper for market share and the pacesetter for technological standards within the Spanish EV tire landscape. OEM demand is primarily driven by rigorous performance specifications set by automotive manufacturers to meet both regulatory compliance (EU CO2 targets) and consumer expectations (range, quietness). The OEM segment's growth is characterized by a clear preference for specialized, premium products, evidenced by Hankook's strategy of strengthening its OEM supply to premium electric vehicles such as the Porsche Taycan, Audi e-tron GT, and BMW i4. This dynamic directly increases the demand for tires with large rim sizes (18 inches and above), which command a higher price point and margin due to the advanced engineering required. As new BEV and PHEV models are launched in Spanish manufacturing facilities, the associated OEM tire demand generates long-term revenue streams through exclusive fitment agreements and establishes the brand's perception for eventual aftermarket replacement sales.

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Competitive Environment and Analysis

The Spanish Electric Vehicle Tires Market is a battleground of innovation, dominated by established global players who leverage decades of automotive partnership and deep R&D capabilities. The competition centers on superior material science to minimize rolling resistance, manage the increased load index from battery packs, and dampen tire cavity noise unique to quiet electric powertrains. Strategic positioning is defined by OEM fitment wins and the swift commercialization of EV-specific product lines.

Pirelli

Pirelli maintains a strategic positioning in the Prestige and Premium EV segment, capitalizing on its historical ties to high-performance vehicles. The company's strategy is driven by technological differentiation and digital integration. Pirelli's key product, the P Zero E, is a high-performance tire specifically designed to maximize efficiency for electric and plug-in hybrid vehicles, claiming up to a 10% increase in mileage. More significantly, Pirelli has integrated its Cyber™ Tyre technology, a sensor-embedded system that collects real-time data on pressure, temperature, and tread wear, communicating it to the vehicle's electronics. This focus on V2X (Vehicle-to-Everything) connectivity is a critical differentiator for partnerships with high-end EV manufacturers, such as the agreement announced with Aston Martin in September 2025, solidifying its place as a leader in intelligent, data-driven mobility solutions.

Continental AG

Continental AG pursues a comprehensive, full-spectrum market approach, targeting both the premium OEM and the high-volume replacement market. The company is strategically focused on sustainable and durable EV-compatible solutions across multiple vehicle categories. Continental recently introduced an EV-Compatible checkmark on some of its new truck and bus tires, such as the Conti HAU 5, signifying its readiness to meet the specialized requirements of electrified commercial fleets. This strategic move directly addresses the burgeoning Light Commercial Vehicle (LCV) and municipal transport electrification trends. Furthermore, Continental is aggressively increasing the share of renewable and recycled materials in its production, aiming for at least 28-29% in 2025, a sustainable manufacturing imperative that directly aligns with the European Union's green mandates and provides a compelling value proposition to sustainability-conscious OEMs in Spain.

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Recent Market Developments

• October 2025: Pirelli's Cyber™ Tyre Wins "Vehicle-to-Everything (V2X) Innovation of the Year." The award, received at the AutoTech Breakthrough Awards 2025, recognizes the Cyber™ Tyre's system, which utilizes sensors inside the tread to collect and transmit data for optimizing vehicle electronics (ESP, ABS) and enabling V2X/V2I communication. This event highlights the shift toward digital, connected tire technology as a core performance and safety feature for the future of electric mobility.
• September 2025: Pirelli announced an agreement for the full integration of its Cyber™ Tyre system within the electronic architecture of future Aston Martin models. This OEM fitment win demonstrates the commercial viability and increasing adoption of smart-tire systems by premium automotive manufacturers for enhanced driving dynamics and safety on their new EV platforms.

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Spain Electric Vehicle Tires Market Segmentation

• BY PROPULSION TYPE
  • Battery Electric Vehicle (BEV)
  • Plug-in Hybrid Electric Vehicle (PHEV)
  • Hybrid Electric Vehicle (HEV)
  • Fuel Cell Electric Vehicle (FCEV)
• BY VEHICLE TYPE
  • Passenger Vehicle
  • Commercial Vehicle
    • Light Commercial Vehicle
    • Heavy Commercial Vehicles
• BY APPLICATION
  • On-road
  • Off-road
• BY SALES CHANNEL
  • OEM
  • Aftermarket

Table Of Contents

1. EXECUTIVE SUMMARY

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities

3.4. Porter's Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations

3.7. Strategic Recommendations

4. TECHNOLOGICAL OUTLOOK

5. SPAIN ELECTRIC VEHICLE TIRES MARKET BY PROPULSION TYPE

5.1. Introduction

5.2. Battery Electric Vehicle (BEV)

5.3. Plug-in Hybrid Electric Vehicle (PHEV)

5.4. Hybrid Electric Vehicle (HEV)

5.5. Fuel Cell Electric Vehicle (FCEV)

6. SPAIN ELECTRIC VEHICLE TIRES MARKET BY VEHICLE TYPE

6.1. Introduction

6.2. Passenger Vehicle

6.3. Commercial Vehicle

6.3.1. Light Commercial Vehicle

6.3.2. Heavy Commercial Vehicles

7. SPAIN ELECTRIC VEHICLE TIRES MARKET BY APPLICATION

7.1. Introduction

7.2. On-road

7.3. Off-road

8. SPAIN ELECTRIC VEHICLE TIRES MARKET BY SALES CHANNEL

8.1. Introduction

8.2. OEM

8.3. Aftermarket

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. Pirelli

10.2. Continental AG

10.3. Hankook Tire

10.4. Bridgestone

10.5. Goodyear Tire & Rubber

10.6. Yokohama

10.7. Kumho Tire

10.8. Michelin Group

10.9. Giti Tire

10.10. Nexen Tire

11. APPENDIX

11.1. Currency

11.2. Assumptions

11.3. Base and Forecast Years Timeline

11.4. Key benefits for the stakeholders

11.5. Research Methodology

11.6. Abbreviations

LIST OF FIGURES

LIST OF TABLES

Description

Pirelli

Continental AG

Hankook Tire

Bridgestone

Goodyear Tire & Rubber

Yokohama

Kumho Tire

Michelin Group

Giti Tire

Nexen Tire

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