China’s BYD plans to acquire its German distributor, Hedin Electric Mobility, as part of its strategy to bolster its standing as a key electric vehicle producer in Europe. This acquisition is designed to improve BYD’s sales and operational control in Germany, refining its market approach during a downturn in EV demand.
China’s BYD announced on Friday its intention to acquire its German distributor, Hedin Electric Mobility, as part of its efforts to cement its status as a significant electric vehicle manufacturer in Europe. This strategic acquisition involves BYD Automotive GmbH assuming responsibility for the sales and distribution of BYD vehicles and parts across the German market, including overseeing operations at its stores in Stuttgart and Frankfurt. The transaction, pending regulatory approval, is anticipated to conclude in the fourth quarter.
This move is strategically important for BYD as it seeks to enhance its control over its marketing and sales strategies in Germany, a market where it reported sales of just over 4,000 units last year. However, sales have dipped this year, mirroring a broader downturn in the EV sector. Previously, Hedin, a Swedish mobility group, facilitated BYD’s entry into the European market by managing its relationships with six dealers across Germany. Hedin also handles distribution for other Chinese brands, such as XPeng and Hongqi.
In addition to Hedin, BYD collaborates with other German dealers, including Sternauto, which recently established a new store for the brand in Berlin. Post-acquisition, Hedin Automotive eMobility GmbH will continue to retail BYD automobiles in three major German cities.
BYD, known for producing both batteries and electric vehicles, is the leading electric car seller in China and has been expanding its international footprint. In recent months, BYD has been laying the foundations for production facilities in Europe and Mexico. The company aims to increase its annual sales by 20%, offering substantial discounts on its top-selling electric vehicles to solidify its market leadership. In the first seven months of the year, international sales constituted 11.9% of BYD’s total sales, with Britain standing out as its most robust European market.
