China’s BYD has announced its acquisition of German distributor Hedin Electric Mobility, a move aimed at strengthening its position as a major electric vehicle (EV) player in Europe. BYD and Hedin revealed the news on 30 August, according to Reuters.
Under the deal, BYD Automotive GmbH will assume responsibility for the sales activities of BYD vehicles and parts in the German market. This includes managing its stores in Stuttgart and Frankfurt. The transaction, which remains subject to regulatory approval, is expected to close in the fourth quarter of this year.
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This acquisition will enable BYD to gain more direct control over its operations and strategy in Germany. Last year, BYD’s sales in the country surpassed 4,000 units, but this year has seen a decline in line with a broader downturn in EV demand across the industry.
Hedin, a Swedish mobility group that also handles distribution for other Chinese car brands such as XPeng and Hongqi, previously managed BYD’s relationships with six dealerships in Germany to facilitate the company’s entry into the European market. Despite the acquisition, Hedin Automotive eMobility GmbH will continue to sell BYD vehicles in three German cities.
BYD, which manufactures both EVs and batteries, has been expanding its global footprint. The company is preparing to establish manufacturing sites in Europe and Mexico.
In pursuit of a 20% increase in annual sales, BYD has been offering aggressive discounts on its best-selling EVs. 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, Reuters reported.
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