Hedin Electric's parent company will transfer its distribution activities of BYD vehicles and spare parts in the German market to BYD in a deal expected to close in the fourth quarter of 2024.
BYD (HKG: 1211, OTCMKTS: BYDDY) will buy its German distributor, Hedin Electric Mobility, as the Chinese new energy vehicle (NEV) maker steps up its bet on the European market.
Hedin Electric's parent company, Swedish dealership chain Hedin Mobility Group, announced on August 30 that it has entered into an agreement with BYD Automotive GmbH to transfer its BYD vehicle and parts distribution business for the German market to it.
The transaction also includes the transfer of two pioneering stores operated by Hedin Mobility's German retail division in Stuttgart and Frankfurt.
The transaction is subject to regulatory approval and is expected to close in the fourth quarter of 2024.
Upon completion of the transaction, Hedin Automotive eMobility GmbH will remain an authorized BYD retailer in Germany with three points of sale in Mannheim, Kaiserslautern and Saarbrücken.
Hedin Mobility will also continue to serve as a dealer and retailer in the Swedish market as part of its long-term partnership with BYD, according to the statement.
"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 and founder of Hedin Mobility.
Hedin Electric has served as BYD's general importer in Germany since 2022 and supplies vehicles and parts to about 30 BYD dealerships in the country.
By acquiring the business, BYD will be able to sell cars directly to dealers, giving it more leeway in the German market.
BYD announced on August 1, 2022, that it has partnered with Hedin Mobility to begin offering NEVs for the Swedish and German markets.
The acquisition of Hedin Electric is BYD's second move in the past two months to expand its voice over dealers.
On July 6, BYD signed an agreement to acquire a 20 percent stake in Thai distributor Rever Automotive.
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