Electric cars, Chinese boom in September. In Europe, factories at risk
Export of made-in-China electric vehicles doubles. Meanwhile, in the EU there is alarm: plants are working at 55% of capacity, with heavy repercussions on profitability
Key points
China doubled its exports of electric cars and plug-in hybrids in September, while Byd, the Shenzhen giant now leading the sector, is looking to the UK as its first market outside its borders. In parallel, the company is intensifying contacts with Madrid, which is confirmed as the most likely destination for its third European factory. Spain, with its competitive industrial network, low production costs and cheap energy, is now the most attractive country for investment in the electric car industry.
According to data released by the China Association of Automobile Manufacturers (Caam), exports ofNev, New energy vehicles (a category that includes battery-powered cars and plug-in hybrids), grew by 100% in September compared to the same month in 2024, reaching 222,000 units. This volume was only slightly lower than the 224,000 vehicles exported in August. Overall, domestic sales of passenger cars in China rose by 11.2% year-on-year, confirming a buoyant domestic market, albeit slower than the +15% recorded the previous month. Many buyers took advantage of expiring trade-in bonuses and the upgrade to an electrified vehicle.
United Kingdom Byd's first market outside China
The giant founded in 1995 by chairman and CEO Wang Chuanfu has also gained a dominant position in international markets, although just over a month ago it had to revise its sales estimates for the year. Sales in the UK rose 880% year-on-year in September, making London the group's main sales outlet outside China. In Europe, Byd increased registrations by 280% in the first eight months of 2025 compared to the same period in 2024, thanks to a range combining full electric and plug-in hybrid models, positioned with an aggressive pricing policy compared to Western competitors.
Byd, new rumours (denied) about Spain. Here's why Madrid is attractive
The group's strategy seems clear: to produce all the vehicles destined for the European market directly on the continent within three years, in order to circumvent tariffs and protectionist measures. After the factory under construction in Hungary and the new plant planned in Turkey, expected for 2026, rumours are periodically repeated that Byd considers Spain to be the main candidate for its third European production site. The Chinese group, however, replies by saying that these are 'unsubstantiated news'. At this stage, according to internal sources, 'they are all focused on starting with the first two European plants, in Hungary and Turkey (considered as such because there is an EU-Turkey customs union agreement in force since 1995), the rest is all speculation.
It is true that Spanish automotive projects have a head start, thanks to the mix of low energy costs, modern infrastructure and a favourable political-industrial context. Madrid has put in place a 5 billion euro plan financed with European funds to attract investment in the battery and electric vehicle sector, attracting giants such as Volkswagen, Stellantis (with the Chinese Leapmotor), Chery and the world number one in batteries, Catl (in partnership with Stellantis itself).
