Classification of NuWays AG to EBRO MOTORS GROUP EV SA

Company Name:	EBRO MOTORS GROUP EV SA
ISIN:	ES0105725008
Reason for the research:	Initiation
Recommendation:	BUY
Target price:	EUR 14.50
Target price on sight of:	12 months
Last rating change:
Analyst:	Jorge Gonzalez

A Spanish automotive revival gaining scale; INITIATE WITH BUY

EBRO Motors Group EV SA (EBRO) is an emerging Spanish automaker combining the revival of a historic automotive brand, the reindustrialisation of Barcelona’s Zona Franca and a joint venture with Chinese automaker Chery. This provides a differentiated route to becoming an automotive OEM: Chery contributes established vehicle platforms, electrified powertrains and procurement scale, while EBRO brings Spanish brand heritage, local manufacturing and a growing distribution network. Built around Nissan’s former Barcelona plant, the partnership gives EBRO access to technology and industrial infrastructure that would be costly and time-consuming to develop independently.

An initial Spanish market share of c. 2.2% in 9M'26 demonstrates the appeal of this proposition. Brand heritage, sustained marketing investment and the Barcelona reindustrialisation story support consumer recognition and trust, while competitive pricing, attractive equipment and modern powertrains underpin the product offering. This penetration has been achieved with a portfolio limited to SUVs and sales concentrated in private buyers and rent-a-car customers. Corporate fleets and long-term leasing therefore represent a sizeable opportunity: the corporate channel accounted for 36.4% of Spanish passenger-car registrations in 2025.

Portfolio and distribution expansion should sustain growth beyond the initial launch phase. We forecast a c. 50bps increase in Spanish market share to c. 2.7% by 2030e, supported by an urban BEV launch in 2027, further dealership openings and greater corporate-channel penetration. Gradual international expansion provides an additional growth engine, contributing c. 10k annual vehicle sales and taking total EBRO-branded sales to c. 42k vehicles by 2030.

Chery production allocations could unlock the next stage of operating leverage. We see confirmation of the first additional assembly volumes as a key potential near-term catalyst. These would improve utilisation of Barcelona’s substantial industrial footprint, spread fixed costs across a larger production base and accelerate margin expansion. The plant also offers Chery a strategic platform for strengthening its European industrial presence, progressively increasing localisation and potentially mitigating exposure to EU trade barriers. Our forecasts assume combined EBRO and Chery production reaches c. 90k vehicles by 2030.

We initiate coverage with BUY and a DCF-based PT of € 14.50. Our investment case rests on continued commercial growth and improving factory utilisation driving profitability. The valuation assumes a terminal EBIT margin of 9.9%, perpetual growth of 2% and a WACC of c. 10%, and incorporates the additional equity funding and associated dilution assumed to support the industrial expansion.

You can download the research here: ebro-motors-group-ev-sa-2026-10-12-fullnoteinitiation-en-5bfdc-komprimiert
For additional information visit our website: https://www.nuways-ag.com/research

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
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