Chinese car brands’ Spain revenue exceeds €2 billion as German profits fall
MG, BYD and Omoda & Jaecoo generated more than €2 billion in combined Spanish revenue in 2025. Their expansion is intensifying price and electrification pressure as Volkswagen Group, Mercedes-Benz and BMW reported a combined €2.7 billion decline in first-half 2026 profits.
Three Chinese groups cross the €2 billion threshold
MG, BYD and Omoda & Jaecoo generated more than €2 billion in combined revenue in Spain in 2025, according to 20minutos.es. Their rapid expansion has been built on electrified vehicles, broad product ranges and prices that established European manufacturers have found difficult to match in a market where buyers remain highly price-sensitive.
BYD Iberia reported revenue of €789 million in accounts filed with Spain’s Commercial Registry. Revenue quadrupled as sales increased 374% to 25,556 vehicles during the latest financial year. BYD, described by the publication as a leading seller of battery-electric and plug-in hybrid vehicles, has set a target of 70,000 Spanish registrations in 2026. It had delivered 26,759 vehicles in the first months of the year, already exceeding its previous full-year result, although the annual target appeared difficult to reach by August.
MG, owned by SAIC, recorded €786.4 million in revenue after a 60% increase. Registrations rose 46.8% to 45,163 vehicles, according to the annual report from Spanish manufacturers’ association Anfac. The company targeted 50,000 deliveries for 2026, but sales through July slipped 1.3% to 28,825 vehicles, 372 fewer than in the comparable period.
Omoda and Jaecoo approach their annual target
Omoda & Jaecoo, the sister brands owned by Chery, doubled Spanish revenue to €563 million in 2025, vice-president of Omoda & Jaecoo Iberia Francesco Colonnese told El País. Their combined registrations reached 26,422 vehicles. For 2026, the company is aiming for about 40,000 units.
Current volumes put that objective within closer reach than some rival targets. Omoda had delivered 15,066 vehicles during the year, while Jaecoo had supplied 8,087, taking their combined total above 23,000. Continued growth would increase competition for dealerships, financing customers and market share across Spain’s electrified and lower-priced vehicle segments.
MG is also moving from distribution toward local manufacturing. The Shanghai-based company announced plans in early June to build a factory in Galicia comprising three centres. Operations are due to begin in 2028, with 2,300 employees and capacity to produce as many as 120,000 vehicles per year. If completed as planned, the project would give the Chinese-owned brand an industrial base inside Spain as well as a growing retail presence.
German manufacturers face a widening profit gap
The gains come as Volkswagen Group, Mercedes-Benz and BMW reported a combined €2.7 billion reduction in profits during the first half of 2026, based on their financial results. Volkswagen Group’s profit fell 30.7%. BMW’s profit declined 28.5% after its sales in China dropped 20.4%. The European industry is contending simultaneously with Chinese competition, the shift to electrification and US tariffs introduced by President Donald Trump.
Cost reductions are accelerating. Volkswagen chief executive Oliver Blume announced up to 50,000 job cuts in Germany by 2030, while Porsche plans to eliminate 5,000 positions. BMW executive Milan Nedeljković announced another 8,000 job cuts by the end of 2027, linked to approximately €1 billion in cost reductions. Chinese brands’ Spanish revenue does not by itself explain the German groups’ global earnings pressure, but their rising registrations show how competition is changing in one of Europe’s major vehicle markets.
