The evolution of automotive brands: figures, risks, and challenges
October 28, 2025
By Sandra Fernández
In 2025, the presence of Chinese manufacturers in the Spanish automotive market has clearly accelerated.
A clear example of this is that, in the year to date, BYD has consolidated its position as the leading brand in plug-in passenger car registrations, with around 16,600 units. This milestone places BYD in the top 10 for sales to private individuals in Spain for the first time. This is not an isolated phenomenon. MG is also showing extraordinary momentum: in the year to date, the brand has registered almost 32,000 registrations, making it the third best-selling brand to private individuals at the moment.
There are also other Chinese brands such as Omoda, Jaecoo and Ebro, which are gradually becoming more familiar to the public and progressively increasing their market share in our country.
There are several factors behind this growth:
- Competitive electric offering and aggressive pricing.
- Intensive distribution and sales network.
- Preference for zero emissions and public subsidies: the boom in demand for electric vehicles has particularly benefited affordable Chinese models.
On the other side of the coin, we have European manufacturers who, for decades, have been a clear symbol of industrial strength, advanced engineering and leadership in innovation. Manufacturers such as Stellantis, Volkswagen, BMW, Mercedes-Benz and Renault are experiencing a period of tension that is forcing them to rethink their models, production chains, commercial strategy, regulations and even corporate culture.
At this juncture, the challenges facing European manufacturers are multiplying:
- Decline in profits and revenues.
- Strict environmental regulations and transition costs: European regulations on CO₂ emissions, increasing electrification targets and increasingly demanding standards are forcing large investments.
- Growing global competition, especially from China, as mentioned above.
- Rising operating costs: increased prices for raw materials, energy and key components, such as semiconductors.
- Irregular demand/slowdown in electric cars: although the transition to electric vehicles is mandated by regulation, not all market signals have been positive. In some regions, demand has been lower than expected.
- Geopolitics, tariffs and external risks: foreign markets, especially China and the United States, are pursuing aggressive trade policies, imposing tariff barriers, etc.
This situation has several significant negative consequences, such as loss of competitiveness and jobs, dependence on foreign raw materials, and exposure to possible sanctions for failing to meet the emission targets set by the European Union.
In conclusion, the European automotive industry is undergoing such a profound transformation that minor adjustments are not enough. Changes in environmental regulations, global competitive pressure, operating costs and consumer preferences are creating a scenario in which manufacturers must decide between ambitious adaptation or risk losing market share, technological relevance and industrial autonomy.
For Europe to maintain its capacity, not only as a vehicle manufacturer but also as a global industrial player, it will be essential to coordinate industrial policies, innovation, supply chains and marketing strategies. And to do so urgently, as many of the challenges are already impacting financial results, employment and competitiveness.