In a move that signals its growing ambition in the European market, China’s BYD has announced plans to acquire its German distributor, Hedin Electric Mobility. The deal, revealed on Friday, marks a significant step for BYD as it looks to solidify its presence as a major player in the electric vehicle (EV) sector across Europe.
The acquisition, expected to close in the fourth quarter pending approval, will see BYD Automotive take the reins of its own destiny in Germany. This means overseeing not just the sales of BYD vehicles and parts, but also the management of key retail outlets in Stuttgart and Frankfurt. For BYD, this isn’t just about shuffling around paperwork—it’s about taking control of a market that has seen its fortunes wane in recent months, with sales dipping as the entire EV industry grapples with a slowdown in demand.
Hedin Electric Mobility, a Swedish group with a hand in the distribution of other Chinese EV brands like XPeng and Hongqi, has been BYD’s guiding hand in Germany, smoothing its entry into a competitive market. The company managed BYD’s relationships with six key dealers across the country, paving the way for a gradual but steady introduction to German consumers. Now, with this acquisition, BYD is set to steer its own course, though Hedin will continue selling BYD cars in three German cities under the new structure.
This move is part of a larger global strategy for BYD, which isn’t content with just dominating the Chinese market. Known for its dual expertise in battery production and EV manufacturing, BYD has been busy laying the groundwork for manufacturing sites not just in Europe, but also in Mexico. The company is eyeing a 20% boost in annual sales and isn’t shy about cutting prices on its top models to keep competitors at bay.
Overseas markets are becoming increasingly important for BYD, with international shipments making up nearly 12% of its total sales in the first seven months of this year. While Germany is a key battleground, it’s actually Britain that has emerged as BYD’s stronghold in Europe.
For BYD, the acquisition of Hedin Electric Mobility is more than just a business transaction. It’s a statement of intent—an indication that the company is ready to take on Europe’s established carmakers on their home turf. With this move, BYD is gearing up to shift from being a newcomer to a dominant force in the European EV landscape.
(Source: Finimize | Automotive News Europe | Motor Trade)
