In 2025, Spain's auto market commenced on a robust note amidst economic growth, subdued inflation, and declining unemployment rates.

By February, car sales had soared 8.4% year-on-year to 162,649 units, with electric vehicle sales skyrocketing by 59.9%. Toyota led the pack with 15,730 units sold, though Renault posed a significant threat with a 51.2% increase.

Chinese brands emerged as a prominent force, with MG ZS topping the list of best-selling models in February, and BYD leading the electric vehicle segment.

01

Overview of Spain's Auto Sales

Spain's economy is forecasted to grow by 2.3% in 2025, with inflation dipping to 2.2% and unemployment falling to 11.0%, providing a favorable macroeconomic environment for the automotive sector.

By February, nationwide car sales had increased 8.4% year-on-year to 162,649 units, with February sales alone rising 11% to 90,327 units. Private sales surged 15.9%, company sales grew by 3.9%, and leasing company sales increased by 13%.

Post-flood reconstruction demand in the Valencia region propelled sales there by 69.3%, serving as a significant driver of national growth. Excluding this factor, market sales still rose by 5.8%.

The electric vehicle market emerged as a standout segment in Spain's automotive industry in 2025. From January to February, electric vehicle sales jumped 59.9% year-on-year, with government incentives and heightened consumer environmental awareness laying the groundwork for future expansion. Traditional fuel vehicles still dominate the market but with slower growth, as the market gradually shifts towards new energy sources.

● Sales performance of major brands in the Spanish market from January to February 2025:

◎ Toyota: Sold 15,730 units, up 14.8% year-on-year, capturing a 9.1% market share.

◎ Renault: Sold 12,307 units, up 51.2% year-on-year, rising five places to second, with electric vehicle sales surging 2310%.

◎ Kia: Sold 10,582 units, up 21.9% year-on-year, climbing three places to third, with SUV models favored by consumers.

◎ SEAT: Sold 9,484 units, down 7.6% year-on-year, slipping two places, facing competitive pressure as a local brand.

◎ Volkswagen: Sold 9,237 units, up 6.4% year-on-year, ranking fifth with stable performance.

◎ Dacia: Sold 9,200 units, up 17.8% year-on-year, moving up two places, maintaining growth with cost-effectiveness.

◎ Hyundai: Sold 8,841 units, down 0.4% year-on-year, falling three places, indicating weak growth.

◎ Peugeot: Sold 3,666 units, down 27.7% year-on-year, slipping five places, with lackluster performance.

◎ MG: Sold 7,400 units, down 77.8% year-to-date but with February sales surging 118.3% to 4,596 units, giving it a 5.1% market share and seventh place ranking.

◎ Mercedes: Sold 7,324 units, up 7.8% year-on-year, rising one place, with stable demand for luxury brands.

● The ascendancy of Chinese brands in the Spanish market is a key trend in 2025:

◎ MG: As a leader among Chinese brands, it sold 7,400 units cumulatively, with February sales reaching 4,596 units, up 118.3% year-on-year, capturing a 5.1% market share and jumping to seventh place. Its SUV model, MG ZS, became the best-selling model in February, up 70.3% year-on-year, highlighting Chinese brands' competitiveness in design, pricing, and market strategy.

◎ BYD: Stood out in the electric vehicle segment with sales up 563.5% year-on-year.

◎ Jaecoo: A newcomer, ranking 28th in February.

The success of Chinese brands is attributed to their high cost-effectiveness, models tailored to European consumer needs, and technological prowess in the electric vehicle sector. With government support for new energy policies, their market share is poised to expand further.

02

Analysis of Best-Selling Models and Competitive Landscape

● The best-selling models in Spain's auto market in 2025 mirror consumer preferences and the dynamic shifts in brand competition. Here are the key models' performances:

◎ MG ZS: February sales surged 70.3% year-on-year, topping the list of best-selling models and marking a breakthrough for Chinese brands in the European market.

◎ Dacia Sandero: Cumulative sales rose 12.8% from January to February, a long-time leader but surpassed by MG ZS in February.

◎ Renault Clio: Sales increased by 57.8%, ranking third, showcasing Renault's strength in the small car market.

◎ SEAT Ibiza: Sales grew by 24.5%, ranking fourth, with robust performance from a local brand.

◎ Toyota Corolla: Sales rose by 8.6%, ranking fifth, with significant brand influence.

New models like Renault Symbioz (ranked 41st in February) indicate market interest in innovative products, while Chinese brands Jaecoo 7 (46th) and BYD Seal U (64th) are gradually gaining recognition.

● Spain's auto market competitive landscape is diversifying, with traditional European brands, Japanese and Korean brands, and Chinese brands forming a tripartite rivalry:

◎ Traditional European brands: Renault threatens Toyota's leadership with strong performances in the electric vehicle and small car markets. SEAT and Volkswagen maintain competitiveness through local advantages and stable product lines. Dacia attracts consumers with cost-effectiveness.

◎ Japanese and Korean brands: Toyota leads with brand influence and a diverse lineup of SUVs and hybrid models. Kia and Hyundai occupy the forefront due to the SUV boom, but Hyundai faces challenges with weak growth.

◎ Chinese brands: The success of MG ZS underscores Chinese brands' breakthrough capabilities in the SUV market, while BYD's leadership in the electric vehicle sector further solidifies Chinese automakers' technological advantages.

Luxury brands like Mercedes continue to grow steadily in the high-end market. The rise of Chinese brands is reshaping the competitive landscape in Spain's auto market, particularly challenging traditional brands in the fields of new energy and cost-effectiveness.

Summary

Spain's auto market demonstrated robust vitality in 2025, with total sales up 8.4% and electric vehicle sales soaring 59.9%, pointing to a trend towards green mobility. The emergence of Chinese brands was the most notable development, with MG ZS topping the list of best-selling models in February and BYD leading the electric vehicle market.