As the global automotive industry undergoes a rapid transformation, regions that combine industrial tradition with innovation, infrastructure, and talent are emerging as key drivers of change. The Madrid region is one such region. Long known as a central hub in Spain’s transport and logistics network, Madrid has in recent years developed into a powerful centre for automotive innovation—playing a crucial role in the transition toward electrification, sustainable mobility, and smart manufacturing.
Home of FORMULA 1
Madrid is set to become the new home of the Spanish Grand Prix from 2026, marking the return of Formula 1 to the capital after 45 years. The city has commenced the construction of the “MADRING” circuit, a semi-urban track located around the IFEMA Madrid exhibition centre. The project officially began in April 2025, with the laying of the first stone, and is scheduled for completion by May 2026.
This development is part of a 10-year agreement between Formula 1 and Madrid, ensuring the city will host the Spanish Grand Prix until at least 2035. The MADRING circuit is poised to become a symbol of Madrid’s commitment to innovation and its growing prominence in the global motorsport arena.
MOTORTEC Madrid: A Regional Showcase with Global Impact
An essential demonstration of Madrid’s international standing in the automotive aftermarket is MOTORTEC Madrid, the premier trade fair for the automotive services and aftermarket industry in Southern Europe. Organised by IFEMA Madrid, MOTORTEC took place from 23 to 26 April 2025, bringing together more than 65.000 professionals from across Spain, Portugal, Latin America, and beyond.
MOTORTEC is not just a trade show—it is a strategic platform for innovation, showcasing cutting-edge developments in connected mobility, diagnostics, garage equipment, e-mobility, and vehicle servicing. The event featured thematic zones, technical training, product launches, and expert-led workshops designed to enhance competitiveness across the value chain.
With dedicated spaces such as the Innovation Gallery, and structured networking activities for OEMs, suppliers, and distributors, MOTORTEC plays a vital role in linking Madrid’s industrial capabilities with global markets. For UK and Irish businesses considering expansion into the Iberian Peninsula or Latin America, the event offers direct access to regional stakeholders and market insight.
Held at IFEMA Madrid’s state-of-the-art event venue, MOTORTEC also underscores the region’s exceptional capacity to host large-scale international events that support business development, trade, and foreign investment.
An Industrial Base Anchored by Multinational Leadership
Madrid’s industrial capacity in the automotive sector is both broad and deep. The region is home to more than 300 companies involved in vehicle manufacturing, components, and automotive services. Anchoring this ecosystem is Stellantis, one of the world’s leading car manufacturers, which operates a significant production facility in the Madrid suburb of Villaverde. This plant specialises in the production of electric and hybrid vehicles, notably the Citroën ë-C4, a flagship compact EV for the European market.
Stellantis’ presence not only ensures high-volume production capacity but also draws a network of Tier 1 and Tier 2 suppliers to the area. Companies such as Faurecia, Gestamp, and Grupo Antolín—key players in advanced materials, interior systems, and structural components—have established operations in the region, creating a dense and integrated supply chain capable of responding to global demand and fast-changing technology.
This manufacturing backbone is further supported by Madrid’s thriving aftermarket sector, which includes companies active in maintenance, distribution, remanufacturing, and diagnostics—segments that are central to global discussions around automotive lifecycle and sustainability.
A Hotspot for Electrification and New Mobility Solutions
Madrid is not only producing vehicles—it’s engineering the future of how mobility is conceived. The regional government has made decarbonisation and clean mobility a priority, aligning with both national and EU-level targets for climate neutrality. The Madrid 360 Environmental Sustainability Strategy supports the rollout of electric vehicle infrastructure, incentives for fleet electrification, and restrictions on internal combustion engines in urban centres.
This regulatory landscape is complemented by a growing number of innovation-driven companies working in next-generation automotive technologies. Madrid-based startups and SMEs such as Wallbox, Irizar e-mobility, and Little Electric Cars are leading in areas like EV charging solutions, electric commercial vehicles, and light urban transport systems. Additionally, Spanish engineering firm CIRCE and research institutions such as IMDEA Energía are developing key technologies in battery efficiency, vehicle-to-grid communication, and sustainable propulsion systems.
As a result, Madrid accounted for approximately 30% of Spain’s total electric vehicle registrations in 2023, positioning the region as a leader in EV penetration and clean mobility adoption.
Strategic Connectivity and Distribution Strength
Geography continues to play a major role in Madrid’s competitive advantage. Situated in the centre of the Iberian Peninsula, Madrid acts as a logistical bridge between Northern Europe and North Africa, and between the Atlantic and Mediterranean corridors. The Adolfo Suárez Madrid–Barajas Airport handles over half of Spain’s air cargo, while the region is connected to major seaports via a modern highway and rail network.
This makes Madrid an attractive base for just-in-time delivery, parts distribution, and export operations—particularly relevant for automotive supply chains requiring flexibility and reach. Industrial hubs such as the Corredor del Henares, TecnoGetafe, and the logistics capital Coslada further enhance Madrid’s credentials as a European distribution powerhouse.
Talent and R&D Capacity: A Foundation for Growth
Madrid boasts one of the most highly educated workforces in Spain, with a strong concentration of engineers, technicians, and logistics experts. Universities such as the Polytechnic University of Madrid, Universidad Carlos III, and Comillas ICAI provide cutting-edge programmes in automotive engineering, robotics, and energy systems.
The region also serves as a magnet for R&D investment. Leading technology firms like Bosch and Siemens have established innovation centres in Madrid, and public-private research initiatives—such as madri+d and the Connected Mobility Hub—drive collaboration between academia and industry in fields like smart manufacturing, autonomous driving, and digitalisation.