Chinese EVs surge in Spain as BYD challenges European carmakers

Chinese electric vehicle maker BYD is rapidly gaining market share in Spain, driven by affordability, expanding dealerships, and growing consumer interest in plug-in hybrids.

Spanish buyers like Javier Hernandez, 51, are drawn to BYD’s Seal U DM-i model, which costs around €30,000 ($35,289) after government subsidies — nearly €10,000 cheaper than comparable European models such as the VW Tiguan and Peugeot 3008 plug-in hybrids. “The value for money was better, I tried it out and they could give it to me right away,” Hernandez told Reuters.

BYD’s network of dealerships in Spain has almost quadrupled in a year, from 25 to nearly 100, accompanied by aggressive marketing campaigns and discounts. BYD’s share of the Spanish EV market reached over 10% in July, more than double its European average and three times that of Tesla. The Seal U has emerged as Spain’s most popular plug-in hybrid so far this year. Overall, BYD’s share of the Spanish car market rose from 0.3% last year to 1.8% through August, surpassing brands like Jeep and Volvo.

Analysts say Spain’s lack of a national automotive champion, following SEAT’s acquisition by Volkswagen, makes it fertile ground for Chinese expansion. Legacy European brands have seen dealership closures and slower growth: SEAT’s sales rose 4% this year, underperforming the Spanish market growth of 15%, while VW and Audi dealerships have fallen 40% over the last decade.

Other Chinese brands are also expanding rapidly. MG sales rose 58%, Chery’s Omoda more than doubled, and BYD sales jumped 675% to over 14,000 cars through August.

Looking ahead, BYD plans to produce all EVs for Europe locally within three years, building a new plant in Hungary. Spain is considered a strong candidate for further expansion due to its industrial infrastructure and low electricity costs.

However, challenges remain. EV adoption in Spain is limited by insufficient charging infrastructure, with around 50,000 charging points, a third of the Netherlands despite Spain’s larger population. As a result, hybrids and plug-in hybrids remain the preferred option for many drivers, including those with access to solar power, like Juan Gonzalez, 56, who cited concerns about long trips in fully electric vehicles.

By Vugar Khalilov