BERLIN – China’s BYD will buy its German distributor Hedin Electric Mobility, BYD and Hedin said on Friday, as BYD moves to establish itself as a major electric vehicle maker in Europe.
BYD Automotive GmbH will take charge of the sales activities of BYD vehicles and parts in the German market, as well as management of its stores in Stuttgart and Frankfurt, BYD said, adding that the deal was subject to approval and expected to close in the fourth quarter.
The move will allow BYD to take greater control of its strategy in the country, where sales totaled just over 4,000 last year but have slumped this year so far in line with an industry-wide crash in EV demand.
Hedin, a Swedish mobility group that also manages the distribution of other Chinese car brands including XPeng (NYSE: XPEV) and Hongqi, previously managed BYD’s relationships to six dealers across Germany to ease the Chinese EV maker’s entry into the European market.
BYD also works with other dealers in Germany including Sternauto, which set up a store in Berlin for the brand earlier this year.
Hedin Automotive eMobility GmbH will carry on selling BYD cars in three German cities, BYD said.
BYD, which produces batteries as well as EVs and leads electric car sales in China, has expanded its global presence in recent months, laying the groundwork for manufacturing sites in Europe and Mexico.
The company is targeting a 20% jump in annual sales for the year, offering aggressive discounts for its best-selling EVs to secure its leadership position. Overseas shipments accounted for 11.9% of BYD’s total sales in the first seven months of the year, with Britain emerging as its strongest market in Europe.
(Source: ReutersReuters)
