BYD Co. has agreed to buy German distributor Hedin Electric Mobility as Chinese electric-vehicle makers ramp up efforts to gain a foothold in Europe’s auto market.
The transaction with parent company Hedin Mobility, the Swedish dealership chain, is expected to close in the fourth quarter of 2024, and includes a takeover of BYD’s flagship stores in Stuttgart and Frankfurt, the carmaker said August 30.
The company didn’t provide financial details for the deal, which is subject to regulatory approval.
The move comes as Chinese EV manufacturers such as 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.
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 in Europe’s biggest car market.
Hedin Mobility’s German dealerships will remain BYD partners, the company said in the statement.
