Chinese car brands are becoming increasingly popular in Spain. We analyze the keys to this phenomenon.
China is already one of the world leaders in the production of 100% electric and hybrid cars, something that has been noticeable especially since the European Union banned the sale of combustion vehicles from 2035, with the clear objective of significantly reducing polluting emissions.
As a result, the European and Spanish markets are in the midst of transformation, with European brands still lacking a clear transition, which is a perfect breeding ground for Asian and particularly Chinese brands, which have been years ahead in this implementation.
For all these reasons, the import figures in Spain of hybrid and electric cars from China are increasing steadily, which ratify data such as that in 2022 Spain bought Chinese vehicles for more than 1,399 million euros, with a growth compared to 2021 of 1,905% (there were 68 million euros in that year) (data ANFAC – Spanish Association of Automobile Manufacturers).
The consequence is that Chinese cars already represent 7.3% of international purchases, the market being also very crowded by Japanese Asian brands such as Toyota or by the Korean Kia and Hyundai, which also continue to gain presence in our market exponentially.
MG: the tip of the iceberg
The legendary British brand MG has been owned since 2007 by SAIC Motor, a Chinese multinational state-owned company headquartered in Shanghai, which also owns Maxus, Roewe and Yuejin, competing with other large Chinese groups such as BYD, FAW Group, BAIC, Dongfeng Motor and Geely.
The cars manufactured by MG in terms of passenger cars and SUVs are the best sellers in Spain, with 13,271 units registered since January 2021, and multiplying by 6 its sales figures in 2023 compared to 2022, thanks to a wide range of electric models at affordable prices.
In addition, MG is the brand that has grown the most in Spain so far in 2023, thus leading the Chinese offensive in Europe and Spain, with an already extensive commercial network and a very affordable pricing policy.
MG is already 17th in the ranking of new car sales in Spain, ahead of historic brands such as Volvo, Mini, Jeep, Suzuki, Lexus, Nissan, Mazda, Alfa Romeo, Land Rover, Honda and Subaru. It also ranks third in terms of electric car sales in the segments in which its range is present (ZS EV, MG4, MG 5 and Marvel R), behind Tesla Model Y and Model 3.
MG’s strategy, there is no doubt that it moves in the field of democratization of electric mobility, a thing well accredited by the super competitive prices it offers in the European market.
Growing Chinese brands
In Spain is already present at least a dozen brands that come from the Asian giant, being the last to arrive BYD that already raises 3 models 100% electric, although MG remains the brand that stands out from all others for its rapid implementation in our market and the great reception that customers lend to this brand.
During the first half of 2023 Chinese brands have sold in Spain more than 8,100 units, multiplying by 4 the 2,200 units sold in 2022 in the same period, which augurs an unprecedented take-off of Chinese brands in our market during this year and the next ones.
A quick analysis of the Chinese brands and their sales figures allows us to understand this type of strategy in the 12 Chinese brands already present in Spain, positioning in second place, after MG, the Lynk & Co brand that is part of the Geely consortium to which Volvo, Lotus and Polestar also currently belong, managing to position its plug-in hybrid “01” as the best seller with 4,872 units and its 4-year warranty.
The third place is occupied by the SWM brand, which comes from a former Italian motorcycle manufacturer and has been owned by a Chinese group for some years now.
The fourth and fifth places are occupied by SERES with 3 gasoline-powered SUVs, and BYD which will be the one with the highest immediate growth according to all studies.
BYD is the world’s second largest electric car manufacturer, behind Tesla, and has already announced its interest in setting up an assembly plant in Europe (perhaps Barcelona).
Other Chinese brands that are starting their way in the market and that will propose important sales increases in the near future are: Chery, Zhindow, Aiways and Maxux.
There is no doubt that the Chinese landing is already successful and promises significant growth in Spain and all European markets, without forgetting that these Chinese companies are already showing significant signs of qualitative improvements and that, without doubt, sooner or later they will be absolute leaders in electric propulsion.