BYD may start selling its vehicles in Germany itself

As the German Manager Magazin reported, citing three insiders, BYD plans to revise its sales strategy for Germany. Instead of working with an importer, the manufacturer intends to sell the vehicles themselves. This would mean a split from partner Hedin Mobility Group. BYD has been preparing European sales with Hedin since the summer of 2022. At the European launch of the Chinese brand in Paris in autumn 2022, there were hardly any BYD staff on site—the Hedin people were present.

Hedin concluded agreements with six dealer groups in Germany to handle BYD sales and service at established locations. At the same time, it also set up its own branches. BYD currently has 27 sales locations in Germany. It is not yet known what the alleged separation from Hedin means for the partnerships with these dealer groups. A BYD spokesperson told Manager Magazin that it was too early ‘to comment.’ Hedin did not comment at all.

It is well known that BYD is unhappy with its European sales figures. In May, the previous head of Europe, Michael Shu, was ousted, and Stella Li took over responsibility – the manager is unofficially seen as number two at BYD behind founder and president Wang Chuanfu. Poor registration figures, particularly in Germany, were already cited as a reason for the reorganisation at the time. In 2023, 4,139 BYD vehicles were registered in Germany, and in the first seven months of 2024, only 1,432 units were registered. BYD hopes to sell 120,000 cars in Germany alone in 2026.

As the article states, Stella Li “apparently feels that her partner Hedin, in particular, is holding her back.” Thus, she wants to set up a ‘National Sales Company,’ which would “work with significantly more dealers than before. But BYD could also push direct sales via the Internet,” writes Manager Magazin. However, the names of potential partners and a timetable are not mentioned—only the date of 1 October is known.

However, Hedin is probably also dissatisfied with its partner from China. According to reports, the Swedes would have liked to have more than six trading partners in Germany to have more locations and reduce the power of the individual trading partners. That is because the few contractual partners are aware of their strong position, it is said – and would also block if something did not suit them.

This situation is probably no longer acceptable for BYD. An alleged further conflict over the payment date of eight-figure sums, which Hedin is said to have conceded, is unlikely to have improved the climate between the two partners.

BYD had taken a risk by choosing Hedin as a sales partner. Although the trading group is very large, it primarily has experience in Sweden. Hedin has only been active in Norway since 2017 and has gradually expanded into other countries. Until the agreement with BYD, Hedin was only active in Germany through its subsidiary KW Autohaus GmbH. The company operates a showroom in Bremerhaven and sells used Dodge and Ram combustion engines online. Experience in German sales with electric cars or premium brands looks different.

manager-magazin.de (in German)