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Automotive News Europe — 2024-08-30
Automotive Industry
BYD had targeted Germany as key to achieving its goal to gain a 5% share of Europe's auto market in the midterm.
BYD is taking over its distributor in Germany, Hedin Electric Mobility, as the automaker's leadership becomes increasingly frustrated with the company's slow sales in Europe's biggest market.
BYD had targeted Germany as key to achieving its goal to gain a 5% share of Europe's auto market in the midterm.
But BYD's German sales have remained low even after the automaker got a big boost in the summer when it was the automotive sponsor for the European soccer championship held in Germany.
BYD aims to sell 120,000 cars in Germany in 2026. Through July 2024, its registrations were 1,432 for a 0.1% market share, according to the KBA motor transport authority.
Hedin Electric Mobility has acted as BYD's general importer in Germany since 2022 and supplies cars and parts to around 30 BYD dealers in the country.
By acquiring the business, BYD will be able to sell cars to dealers directly, giving it more leeway on pricing and availability of cars.
Hedin Mobility's German dealerships will remain BYD partners, BYD said in a statement on Aug. 30. Hedin also retains its status as BYD's importer and distributor in Sweden.
BYD did not provide financial details for the deal, which is subject to regulatory approval.
BYD's takeover of its German distribution comes as Chinese EV manufacturers including BYD and SAIC Motor Corp.'s MG brand struggle to expand in Europe amid setbacks including weakening demand and new tariffs on EVs made in China.
In July, registrations for Chinese EVs slumped in Europe, with Chinese companies taking just a 9.9% share of the overall EV market.