In 2026, Chinese models make up half of Spain’s top ten plug-in hybrids. BYD’s Atto 2 DM-i and Seal U DM-i are among those reshaping the market, while BYD and Chery have moved ahead and left European brands searching for answers.
The shift has been swift. In 2024, only two Chinese models made Spain’s top ten for plug-in hybrids. BYD’s Seal U DM-i has already logged 7,445 units this year, while the Atto 2 is on course to top 10,000 sales in its first full year. Chery’s Ebro S700 has joined the Omoda 7 and Omoda 9 in the rankings. Overall, Chinese brands now account for 11 of Spain’s 30 most popular electrified models.
ACEA reports that plug-in hybrid registrations in Spain grew by 33.9% in the first eight months of 2026, confirming the segment’s rapid expansion.
The figures have a clear backdrop. The European Union imposed tariffs on fully electric Chinese cars, prompting automakers from China to focus on plug-in hybrids, which avoid the new import duties. Chinese PHEV registrations in Europe have tripled. They now make up 34% of the segment, with more than 33,300 monthly deliveries, information from AutoFácil. Official data cited by ICCT shows plug-in hybrids reached about 10% of the European market in 2026. The shift is impressive.
Spain once lagged behind even Portugal in electrified car adoption. That has changed: the country has passed a 20% plug-in market share, and electric and PHEV models are nearly tied. Two years ago, that seemed impossible. ICCT data shows electric vehicles in Spain gained about 2 percentage points, reaching 10%, between January and August 2026. The electrified segment is expanding quickly.
Price and practicality are driving Chinese brands’ gains. BYD and Chery sell plug-in hybrids with large batteries, and many can cover 100 km or more on electric power in city driving. Their cabins also feature huge screens and high-end equipment. European brands can’t match their prices without losing money. Driving 100 km in a Chinese PHEV costs as little as €1.20 to €1.60 on a night tariff, compared with €10 in a non-plug-in hybrid or €14 in a petrol car. Pure electrics cost even less to run, but buyers face higher upfront prices or may need to stop often for fast charging. Many don’t want that trade-off. Industry commentary and ACEA publications cite large batteries and long electric range, alongside lower prices and extensive features, as reasons Chinese PHEVs are winning. European brands are feeling the squeeze.
After the EU introduced anti-subsidy tariffs on Chinese battery electric vehicles in 2024, Chinese plug-in hybrids faced no additional duties and remained subject to the standard 10% rate, ICCT says. That regulatory gap drove a sharp increase in Chinese PHEV sales across the EU, with BYD and Chery among the basic contributors to market growth.
The trend reaches beyond Spain. In the latest month on record, BYD registered 26,103 vehicles in Europe, a 131% jump. It has now overtaken MG, which had led Chinese brands since 2011. Chery Group, including Jaecoo, Omoda, Jetour and Ebro, posted 24,332 units, up 210%. Over the first eight months of 2026, BYD, MG (SAIC) and Chery Group were neck and neck, each selling more than 225,000 vehicles. Chinese brands registered 913,703 cars in Europe this year, taking their market share to a record 11.7%. Industry data shows that in August 2026 alone, BYD registered 20,845 vehicles in the EU and Chery about 14,000.
Spain’s figures are starker still. From January to July 2026, BYD registered 26,757 cars, already exceeding its total for all of 2025. The year-on-year increase was 116.6%. BYD now holds 16.1% of the plug-in market. The Atto 2 DM-i is Spain’s top-selling PHEV, with 7,620 units and an 8.3% share of the segment. The Atto 2 range has grown by 1,144.8% this year.
Chinese overcapacity is a major factor in the surge. Domestic demand in China fell by about 5 million vehicles, but factories kept running and turned out nearly 30 million cars a year. North America is largely closed off by a 100% tariff on Chinese EVs, making Europe an obvious export target.
Rather than compete in the fully electric segment, where tariffs and rules are toughest, BYD and Chery targeted plug-in hybrids. Spanish buyers aren’t choosing “Chinese PHEVs” for the brand; they want 100 km of electric range, a giant screen and a price €20,000 below the nearest Toyota. That value is hard to beat.
But the window may not stay open. The EU is considering extending tariffs to Chinese plug-in hybrids, a move that could reshape the market again. Chinese brands move quickly: the BYD Dolphin G DM-i entered Spain’s PHEV top ten in its first full month, with 317 registrations and a 2.2% share. Its launch-measure-pivot cycle looks more like a tech startup’s than a carmaker’s. European press reports say Brussels has asked Beijing to limit hybrid exports to about 15% of the EU market. Without a deal, quotas or other protections could follow.
As reported earlier, electrified vehicles are taking a larger share of Spain’s shifting car market. Chinese brands’ surge reflects regulatory gaps and competitive value, while its pace is testing rivals and lawmakers. What happens next depends on how quickly Europe changes its rules and how far Chinese brands can push before the door shuts. Established automakers are scrambling to keep up.
