Chinese companies already represent 4% of the Spanish market, after recording a surge in sales in 2023 thanks to the push of MG, which has sold almost 30,000 units and aspires to much more in 2024.
The composition of Spanish car market it is changing with the arrival of new brands, especially from Asia. Until a few years ago, the top positions in sales were for companies such as Seat, Renault or CitroenWhile Toyota and Kia They were the best sellers in Spain for two consecutive years.
This new order also shows no sign of staying still for long, as Chinese brands have concentrated on the Spanish market and it is likely that in a few years we will see some of these brands in the top commercial positions.
In just three years, the companies of the Asian giant They went from a nominal position in the Spanish market of less than 1% to quadrupling their presence, as at the end of 2023 they had a share in Spain of 4%, well above the 1.4% recorded last year.
The growth of Chinese car brands in Spain is very significant both in terms of the arrival of new companies and in terms of volumes and it is foreseeable that it will continue to increase in the short and medium term, as happened previously with the Japanese and Korean brands and which now lead national registrations.
Despite the greater Asian presence in the Spanish market, European companies continue to be by far those with the greatest penetration, with 55.7% in 2023, even if this means cutting 57.5% in 2022, while companies also Korean companies have reduced their market share, from 15.2% to 13.3% in 2023, according to data from Handy. The Chinese, however, already hold 4% of the sales pie in Spain, while the Japanese have also improved their representation in Spain, reaching 15% (14.8% the previous year).
This new market structure is mainly explained by the push of two large brands: Toyota and MG. In the case of the Japanese company, leadership in hybrid technology has led it to repeat in 2023 as the best-selling model in Spain (by far) and it has many options to maintain that position also in 2024.
The MG effect
For its part, MG is the great spearhead of the Chinese offensive in the Spanish market, thanks to the fact that it combines an excellent quality-price ratio. MG bases its success on three pillars: a recognized brand like the British one MG – acquired in 2007 by the Chinese SAIC-, an adequate price for cars of great design and, above all, with an offer of petrol engines, which are the most requested at the moment on the Spanish market and also on the European one.
These ingredients make MG by far the best-selling Chinese brand in Spain in 2023, with almost 30,000 deliveries and recording growth of 321%. MG’s push has tripled the penetration of Chinese car brands in Spain (+233%) between 2022 and 2023, going from 11,435 units in 2022 to 38,176 units in 2023.
Lynk & Co, owned by the Chinese company Geely, which also owns Volvo or Polestar, was the second Chinese brand that sold the most cars in Spain, although far behind MG. Lynk&Co bases its success on the subscription model, through which it offers a car without constraints at a fee of 600 euros per month, which can be canceled without penalty. This innovative formula has led it to improve its registrations in Spain by 39% in 2023, up to 3,930 units, while DR It was the third most popular Chinese company, with 1,510 units, up 272%.
Although the volumes of Chinese brands, excluding MG, are still limited compared to Toyota’s almost 80,000 units in 2023 or Kia’s 66,245 units, brands such as BYD, GWM and even Omoda have already landed, which I have a lot to say about in the coming years
BYD It has launched five models in Spain in eight months and will introduce another soon, aiming to reach last year’s 628 units. Moreover, GWM will arrive this year with its Wey and Ora model lineswhile Omoda made a timid landing at the end of 2023, but plans to strengthen its presence in 2024.
In 2024, other Chinese brands will arrive in Spain, but above all it will be the year of their commercial consolidation.
Profitable business model
The MG model, contrary to usual, has achieved profitability since its first year in Spain and in 2022 it has already earned 2.75 million (seven times more). The company expects to have a turnover of 800 million in 2023, i.e. six times more than in 2022, which also means improving the forecasts for the second time, which initially were 500 million in revenues and then rose to 700 million.
2024-01-24 00:35:30
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