Hedin sells German BYD sales organisation to BYD Europe

For a good week now, there have been increasing signs that BYD is dissatisfied with its importer Hedin and is seeking direct access to dealers in the important German electric car market. While the development was previously only based on insider reports, both sides are now going public 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 be downgraded to an ‘authorised dealer’ in Germany.

The official announcement refers to a transfer of the German sales activities including the spare parts business. To this end, BYD is acquiring the Stuttgart-based importer subsidiary Hedin Electric Mobility GmbH, which is responsible for Germany, in the form of its new subsidiary BYD Automotive GmbH – and is thus taking over the operation of the two BYD stores in Stuttgart and Frankfurt, which are currently managed by the German Hedin retail department.

Reorganisation to take place in the fourth quarter

According to both companies, the transaction is still subject to regulatory approvals and is expected to be finalised in the fourth quarter of 2024. Following the transaction, the German Hedin subsidiary will remain an authorised 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 other importers, such as the Nic. Christiansen Group (Denmark) or the Denzel Group (Austria).

“BYD is committed to fostering strong long-term partnerships. The existing partnerships with the German retailers will continue. Together 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.

Cooperation lasted two years

Just over a week ago, the German publication Manager Magazin reported that BYD was putting its cooperation with the Swedish Hedin Group to the test in its current form. The article stated that BYD would end its cooperation with its German importer and take over sales itself from 1 October. The background to this is said to be the weak sales figures in Germany to date.

BYD had been preparing and subsequently implementing sales in Europe with the Swedes since the summer of 2022. For Germany, Hedin had in turn concluded agreements with six dealer groups to handle BYD sales and service at established locations – at the same time, Hedin also set up its own branches. BYD currently has 27 sales locations in Germany.

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

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