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Mia Nurmamat

At an Xpeng showroom in Barcelona, sales manager Eric follows the same routine with almost every customer: he invites them to sit inside the vehicle and take it for a test drive.
“Many people already know it’s a Chinese brand before they walk in, so they come with certain expectations about quality,” he said.
Those expectations rarely make it past the first moments of the test drive.
“Once they get inside the car, their perception changes very quickly. They realise it’s much more refined and technologically advanced than they expected.”
The shift is reflected in China’s export data. Customs figures showed China exported more than 199,100 plug-in hybrid vehicles (PHEVs) worth US$4.19 billion to the European Union (EU) in the first half of 2026, up 205.1 per cent by volume and 222.7 per cent by value from a year earlier.
Spain has emerged as one of the fastest-growing markets, with imports of Chinese PHEVs reaching over 39,800 units worth US$860 million, up 106.4 per cent and 109 per cent respectively.
Combining an electric battery with a petrol engine, PHEVs have become increasingly popular among European consumers looking for lower emissions without sacrificing driving distance.
BYD’s Seal U DM-i, Atto 2 DM-i and Geely’s Starray EM-i 1.5 ranked among Spain’s bestselling plug-in hybrids this year, according to Movilidad Electrica, a Spanish online publication focused on the electric vehicle industry.
The improving fortunes of Chinese brands are also visible at Xpeng’s Barcelona showroom and at a nearby, newly opened Morris Garages (MG) showroom.


Sales manager Ricard Espin said foot traffic had increased steadily since the showroom began operating in March, with more buyers seeking to purchase hybrid cars.
The British marque, founded in 1924, was acquired by China’s SAIC Motor in 2007 and now operates as part of the state-owned carmaker’s passenger vehicle business.
Espin said Spanish consumers had long associated Chinese-made products with lower quality, which initially made some buyers wary of Chinese car brands.
“But as more Chinese products have entered the market, people have realised the quality is much better than they expected,” he said. “That perception has changed, and Chinese-made cars are benefiting from that shift.”
Analysts said the surge in Chinese PHEV exports reflected not only consumer demand but also European trade policy.
The EU imposed countervailing duties of up to 35.3 per cent on Chinese-made battery electric vehicles (EVs) in July 2024, on top of its standard 10 per cent import tariff.
“The sharp jump in Chinese PHEV exports is mostly a classic tariff-dodging pivot,” said Alicia Garcia-Herrero, chief economist for Asia-Pacific and the Middle East at Natixis.
Chinese manufacturers shifted towards PHEVs after the additional tariffs on EVs, while competitive pricing and persistent range anxiety continued to support demand, she said.
Garcia-Herrero said the tariffs had only been partially effective. While they encouraged carmakers including Tesla, BMW and Volvo to localise production in Europe, Chinese brands continued expanding their market share through PHEVs and local manufacturing.
The loophole is now so obvious that Brussels is already preparing to close it
Alicia Garcia-Herrero, Natixis chief economist
She expected Brussels to extend its scrutiny to Chinese PHEVs, warning that the EU was likely to introduce countervailing duties or anti-circumvention measures on the vehicles at “a similar 17 to 35 per cent range”.
“The loophole is now so obvious that Brussels is already preparing to close it,” Garcia-Herrero added.
Chinese manufacturers are already deepening their presence in Spain. Cherry has resumed production at the former Nissan plant in Barcelona, BYD is planning a vehicle factory, Envision is developing a battery project, and Geely is partnering with Ford to produce EVs in Valencia.
Trade policy, however, is only part of the story. Consumer concerns over charging infrastructure continue to favour plug-in hybrids.
British couple Martin and Silvia bought a Toyota Corolla hybrid five years ago and said they would make the same choice today.
“When we bought the car, electric vehicles didn’t have enough range and Spain’s charging network was still limited,” Martin said.
Silvia agreed. “The charging infrastructure still isn’t convenient enough,” she said, recalling a friend who has to plan long-distance journeys around Tesla charging stations.
Alex, who lives on the outskirts of Barcelona, said he reached the same conclusion after considering an electric car.
“The problem isn’t the car – it’s charging,” he said. “In China, the US and even some parts of Spain, electric cars already make sense. But across much of Europe, the charging infrastructure still hasn’t caught up.”


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Spain is one of the fastest-growing markets for Chinese plug-in hybrid vehicles as customers’ technological expectations shift gears


Spain is one of the fastest-growing markets for Chinese plug-in hybrid vehicles as customers’ technological expectations shift gears.


China’s PHEVs, outmanoeuvring EU tariffs, gain traction in Spain

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Spain is one of the fastest-growing markets for Chinese plug-in hybrid vehicles as customers’ technological expectations shift gears

Spain is one of the fastest-growing markets for Chinese plug-in hybrid vehicles as customers’ technological expectations shift gears