BYD Automotive GmbH plans to buy Hedin Electric Mobility, a car distributor in Germany.
Hedin is a Swedish company that distributes other Chinese car brands across Germany, including BYD and XPeng. The Swedish car distributor previously managed BYD’s relationship with dealers across Germany.
Purchasing Hedin Electric Mobility will likely strengthen BYD’s position in the European market. It aims to beat the top automakers in the region, including Volkswagen and Tesla.
Hedin will continue to manage BYD’s relationship with German dealers after the purchase deal is finalized. According to Reuters, BYD’s purchase deal with Hedin is subject to approval but is expected to close by the fourth quarter of this year.
BYD will gain more control over its European sales through the Hedin purchase. It will take over sales activities in the German market and directly manage stores in Stuttgart and Frankfurt.
The Chinese automaker predicts that its overseas market will account for 50% of its total global sales in the future. Expanding in the European car market is a significant part to reaching BYD’s goals.
BYD reportedly plans to build electric vehicles (EV) in Hungary, which will help it avoid the EU Commission’s recently imposed tariffs on Chinese EV imports. The company also hired former Fiat Chrysler COO Alfredo Altavilla, to help with its expansion into Europe.
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