BYD to take over its German car import from Hedin

What had become apparent over the past few days is now official: BYD is taking sales in Germany into its own hands. To this end, the Chinese car manufacturer founded BYD Automotive GmbH and took over Hedin Electric Mobility, the Hedin subsidiary previously responsible for BYD imports.

There were increasing signs that BYD was dissatisfied with its importer, Hedin, and was seeking direct access to dealers in the important German electric car market. Both sides have confirmed this in a joint announcement: BYD is buying Hedin’s sales activities and establishing a sales company called BYD Automotive GmbH for this purpose. The agreement also includes the spare parts business. Hedin will remain an ‘authorized dealer’ in Germany.

Thus, BYD is acquiring the Stuttgart-based importer subsidiary and taking over the operation of the two BYD flagship stores in Stuttgart and Frankfurt, which the German Hedin retail department currently manages.

Starting in October

According to both companies, the transaction is still subject to regulatory approvals and is expected to be finalized in the fourth quarter of 2024. Following the transaction, the German Hedin subsidiary will remain an authorized BYD dealer in Germany, with three sales outlets in Mannheim, Kaiserslautern, and Saarbrücken.

The Hedin Mobility Group will continue to operate as an importer and dealer on the Swedish market as part of its long-term partnership with BYD. In other European countries, BYD relies on importers like the Nic. Christiansen Group (Denmark) or the Denzel Group (Austria). Belgium and Luxembourg use Inchcape, which is also the Toyota importer.

“BYD is committed to fostering strong long-term partnerships. The existing partnerships with German retailers will continue. With its retail partners, BYD will further extend outstanding customer services and warranty support in Germany,” says Stella Li, Executive Vice President of BYD Company Ltd.

“Over the past two years, we have worked with BYD to develop the German market. The foundation is now in place to scale up volumes, and we look forward to continuing this journey in Germany together with BYD as a dealer,” says Anders Hedin, CEO and founder of Hedin Mobility Group.

Bold moves

It was an open secret that BYD was dissatisfied with its European sales figures. In May, the previous head of Europe, Michael Shu, was ousted, and Stella Li, the number two at BYD behind founder and president Wang Chuanfu, took over responsibility.

Poor registration figures, particularly in Germany, were already cited as a reason for the reorganization. In 2023, BYD registered 4,139 cars in Germany, but in the first seven months of 2024, only 1,432 vehicles were registered.

A far cry from BYD’s plan to sell 120,000 cars in Germany alone in 2026. Of course, the reluctance of the German market to adopt electric driving also plays a significant role here. According to the latest ACEA figures, EV registrations in Germany fell 36.8% last month. The drop dragged Europe’s EV market share down to 12.1% from 13.5% a year ago.

BYD’s big move is part of its ambitious plans to expand in Europe. By 2026, BYD aims to control 5% of the European auto market, and Germany will be crucial to achieving this.

Although BYD has struggled to gain traction in Europe, sales are expected to increase as new models roll out. Taking control over distribution in Germany is a big win for the company. BYD can now set prices with more flexibility on availability.

Volkswagen as the primary target?

The most important brand, BYD, has insight into the German and European markets to compete with what seems to be Volkswagen. Due to declining sales, Volkswagen aggressively seeks to cut costs.

To that end, BYD is continuously expanding its range. We already know that Seal and its SUV brother, Seal U, are considered strong competitors for the Tesla Model 3/Model Y and the VW ID.4/ID.5; now, BYD will add a third member to that family, the Seal 06 GT.

The car is the product version of the Concept Ocean M. It sits on the same E-Platform 3.0 Evo as the ‘normal’ Seal and has a slightly more compact hatchback body. It will be available in basic RWD form with a 160 kW/218 hp motor and a version with AWD and two motors totaling 310 kW/422 hp.

The latter is premiering in China as the Seal 06 GT, but when the car comes to Europe (in 2025), it will probably be called Seal X. The RWD version is meant to battle cars like the just launched ID.3 GTX and MG 4 XPower, but the basic version will, of course, compete with the normal ID.3 and MG 4, to name but a few.

Another BYD product awaited in the lower-priced regions is the Seagull. The small car will compete with the Volkswagen ID.1 (when it’s finally ready) but will also battle the likes of a Renault Twingo when that comes on the market (probably 2026).

According to research from Rhodium Group, BYD earns 14,300 euros on each Seal U model sold in Europe. That’s far more than in China, which has a 1,300-euro profit per unit sold. So, even with the higher EU import tariffs (+17% for BYD), the company can offer lower prices. Does Volkswagen have this flexibility? We’ll see.