Spanish car market faces steep price rise as Chinese brands capture sales

The average price of new cars in Galicia reached €24,500 in May, a 6.6% rise from January and more than three times the inflation rate. While gasoline‑fueled models stayed around €24,700, diesel cars fell to an average of €17,147, now a minority of registrations. The surge is linked to higher costs for hybrid and electric models, which topped €30,120, and to the rapid entry of Chinese manufacturers such as BYD, MG, Jaecoo and Leapmotor.

Chinese brand BYD sold 17,986 vehicles in Spain from January to May 2026, matching Audi’s May sales of 4,527 units and closing the gap with the German premium maker. The OMODA 9 attracted 1,832 customers in the same period, pulling buyers who would traditionally choose Porsche. The competitive pricing and equipment levels of Chinese models are prompting European brands across the segment to adjust prices and strategies.

These dynamics are reshaping consumer choices and putting pressure on the traditional European automotive industry while also affecting tax revenues, as most new registrations avoid the vehicle‑registration tax for emissions below 120 g/km.