BYD is taking control of its German distributor, Hedin Electric Mobility, as the automaker's leadership grows increasingly frustrated with sluggish sales in Europe's largest market. Germany is crucial to BYD's strategy of capturing a 5% share of the European auto market in the midterm. The company has set a goal of selling 120,000 cars in Germany by 2026, but as of July, it had only registered 1,432 vehicles, representing just 0.1% of the market, according to the KBA motor transport authority.

Despite a significant marketing boost as the automotive sponsor for the European soccer championship held in Germany this summer, BYD’s sales in the country have remained disappointingly low.

Hedin Electric Mobility has been BYD's general importer in Germany since 2022, supplying cars and parts to around 30 BYD dealerships nationwide. By acquiring Hedin's business, BYD aims to streamline its operations, allowing it to sell directly to dealers and gain more control over pricing and vehicle availability.

Although BYD is taking over the distribution, Hedin's German dealerships will continue to operate as BYD partners. Additionally, Hedin will maintain its role as BYD's importer and distributor in Sweden. The financial terms of the deal, which is pending regulatory approval, have not been disclosed.

This move comes as Chinese EV manufacturers, including BYD and SAIC's MG brand, face challenges expanding in Europe. These include weakening demand and new tariffs on EVs imported from China. In July, registrations of Chinese EVs in Europe dropped, with Chinese brands capturing just 9.9% of the overall EV market.