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BYD’s Backdoor Entry Into Germany – CleanTechnica

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I just wrote about the possibility BYD will become the largest automaker in the world. Right after doing so, I was scrolling through stories and saw that BYD has just made a move into Germany that I see as a kind of quick, backdoor way into the country.

Just note that this is not about manufacturing, so it’s not going to help BYD get around those recently introduced tariffs on China-produced EVs (BYD’s extra tariff is 17%, which is on top of the base 10% tariff for EVs). However, it will surely help BYD in growing its sales network and service network in the largest auto market in Europe.

Here’s the news: “BYD Automotive GmbH and Hedin Mobility Group have entered into an agreement transferring the distribution activities of BYD vehicles and spare parts in the German market to BYD Automotive GmbH.

“BYD Automotive GmbH, as the purchaser, and Hedin Mobility Group, as the seller, have entered into an agreement for the sale of the subsidiary Hedin Electric Mobility GmbH, the appointed Dealer+ of BYD vehicles and spare parts in the German market. The transaction also includes a business transfer of the two pioneer stores in Stuttgart and Frankfurt which are operated by Hedin Mobility Group’s German retail division.”

Now, we could get into the details of this, but I don’t think that’s what actually interests readers broadly. It’s the broader storyline or point that caught my attention and probably intrigues others as well. We know BYD is dominating the Chinese BEV and plugin hybrid market, which now combine for 51% of all auto sales. We also know that BYD is entering more and more developing markets around the globe, from Southeast Asia to South America and many places in between*. However, what about the big giant nuts that are Europe and the US? Is BYD going to try to succeed in these markets or is it going to give up? Europe and the US have put up tariffs to limit the competitiveness of Chinese EVs like BYD’s, and consumers themselves are very brand loyal, making it hard for a new brand to break into the market. BYD is selling vehicles in Europe, but they are in no way flying off of lots and stirring a revolution there.

So, that’s the point. This news shows us that BYD still cares strongly about the European, in this case especially the German, market. It is working to grow its presence, find sales, and scale up business there. And I’m seeing now that the head of Hedin Mobility Group is saying essentially the same thing. “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.

Let’s see what comes of it. While I’m clearly quite bullish on BYD’s growth prospects globally, I do think the European market is the toughest for BYD — well, that or the US, as there are strong arguments for and against both. Will BYD be able to start making notable sales in a year in Germany? Or in two?