BYD has announced a significant shift in its European electric vehicle (EV) strategy by taking direct control of its sales operations in Germany, Europe’s largest automotive market. 

In a joint statement, BYD and the Hedin Mobility Group revealed that BYD will acquire Hedin Electric Mobility GmbH, the current importer and distributor of BYD EVs in Germany. To facilitate this transition, BYD is establishing a new subsidiary called BYD Automotive GmbH, which will oversee sales and spare parts operations in the German market.

The deal, expected to close in Q4 2024 pending regulatory approval, also includes the transfer of two BYD pioneer stores in Stuttgart and Frankfurt, currently operated by Hedin’s German retail division. Financial details of the transaction were not disclosed.

Stella Li, Executive Vice President of BYD Company Ltd., emphasized the company’s commitment to maintaining existing partnerships, stating, “BYD is committed to fostering strong long-term partnerships. The existing partnerships with the German retailers will continue.”

As a result, the acquisition will allow BYD to sell cars directly to dealers, potentially giving the company more control over pricing and vehicle availability. This change could be crucial as BYD aims to scale up its operations in Germany and across Europe.

Anders Hedin, CEO and Founder of Hedin Mobility Group, commented on the transition stating, “Over the past two years, we have worked with BYD to develop the German market. The foundation is now in place to scale up volumes, and we look forward to continuing this journey in Germany together with BYD as a dealer.”

Notably, this response comes from BYD’s underwhelming performance in the German market. Despite ambitious goals to capture a 5% share of the European auto market in the medium term and sell 120,000 cars in Germany by 2026, BYD’s sales have fallen short of expectations. 

In the first seven months of 2024, the KBA motor transport authority reported that BYD registered only 1,432 EVs in Germany, representing a mere 0.1% market share.

Following the transaction, Hedin will maintain a presence in the German market as an authorized BYD dealer with three sales points in Mannheim, Kaiserslautern, and Saarbrücken. In addition, Hedin will continue to serve as BYD’s importer and distributor in the Swedish market.

As BYD takes direct control of its German operations, the company aims to reverse its fortunes in this crucial market and establish a stronger foothold in Europe’s competitive EV landscape while accelerating its growth in the region.

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