BYD buys out German distributor to take direct control of the German market

On August 30, Hedin Mobility Group in Stuttgart, Germany, announced it had reached an agreement with BYD to sell its German distribution network for the brand. This effectively means that the German Branch of BYD, known as BYD Automotive GmbH, will now control the rights to distribution and spare parts of the BYD brand within the German market.

The transaction is an agreement for Hedin to sell its subsidiary Hedin Electric Mobility GmbH, the appointed Dealer+ of BYD vehicles and spare parts in the German market to BYD. Also covered as part of the agreement is the transfer of two pioneer stores in Stuttgart and Frankfurt, which are currently operated by Hedin Mobility Group’s German retail division, to BYD’s control.

The agreement does not, however, sever Hedin’s Connection to BYD fully. The company will remain an authorized retailer of BYD in Germany with three sales points in Mannheim, Kaiserslautern, and Saarbrücken. Furthermore, Hedin Mobility Group will continue to act as Dealer+ and retailer in Sweden.

“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,” said Anders Hedin, CEO & Founder of Hedin Mobility Group.

The deal empowers BYD’s position in the German market. Now acting as the distributor, BYD can enter into more agreements with dealer networks across Germany, expanding the company’s footprint around the country. Equally, by controlling the spare parts arm, BYD will be able to ensure that the customer experience is fully under the company’s control with regard to service and maintenance of cars sold.

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“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,” said Stella Li, Executive Vice President of BYD Company Ltd.

The transaction is subject to regulatory approval and will likely be finalized in the fourth quarter of 2024. BYD sold 4,139 BYD cars in Germany last year, but as of the end of July, it had sold just 1,432 cars in 2024. An obvious motivator behind the deal is to try to expand sales at a faster rate.

Source: Hedin Mobility Group