{"id":76349,"date":"2024-08-30T10:41:39","date_gmt":"2024-08-30T14:41:39","guid":{"rendered":"https:\/\/autosector.com\/?p=76349"},"modified":"2024-08-30T10:41:39","modified_gmt":"2024-08-30T14:41:39","slug":"byds-bold-move-germany-could-spell-big-trouble-volkswagen","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=76349","title":{"rendered":"BYD’s bold move in Germany could spell big trouble for Volkswagen"},"content":{"rendered":"
\n\t\"BYD-Germany\"<\/figure>\n

China\u2019s leading EV maker, BYD<\/a>, is making big moves to gain a foothold in Europe. BYD\u2019s latest deal could spell big trouble for Volkswagen in Germany.<\/p>\n

<\/p>\n

BYD is taking over its distributor in Germany, allowing it to sell its cars directly in Europe\u2019s largest auto market.<\/p>\n

On Friday, the Chinese auto giant officially signed an agreement with Hedin Mobility Group to buy out its subsidiary, Heden Electric Mobility. <\/p>\n

Over the past two years, Heden Electric has imported vehicles and spare parts for BYD to sell in Germany. However, the move will give it more control over pricing and other key parts of distribution. BYD will now be able to sell its cars directly to buyers in Germany and set prices on its own terms.<\/p>\n

\u201cTogether with its retail partners, BYD will further extend outstanding customer services and warranty support in Germany,\u201d BYD\u2019s executive vice president, Stella Li, said.<\/p>\n

In addition to gaining control of distribution, BYD will also take over two flagship stores in Stuttgart and Frankfurt, Germany.<\/p>\n

\"BYD-Germany\"
BYD Dolphin (left) and Atto 3 (right) Source: BYD<\/figcaption><\/figure>\n

BYD is on the move in Germany<\/h2>\n

Anders Hedin, CEO of Hedin Mobility Group, explained, \u201cThe 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.\u201d<\/p>\n

The deal is expected to close in the fourth quarter of 2024. As part of its long-term partnership, Hedin will still act as BYD\u2019s dealer and retailer in the Swedish market.<\/p>\n

\"BYD-Germany\"
Michael Shu, Managing Director of BYD Europe, speaks at the IAA (Source: BYD)<\/figcaption><\/figure>\n

Although no prices were revealed, Germany\u2019s Handelsblatt<\/a><\/em> reported it could be in the \u201clow double-digit million\u201d range with outstanding debts demanded by Hedin.<\/p>\n

BYD\u2019s big move is part of its ambitious plans to expand in Europe. BYD aims to control 5% of the European auto market by 2026. Germany will be a crucial part of achieving this. However, as of the end of July, the Chinese automaker accounted for a minor 0.1% with only 1,432 vehicle registrations in Germany.<\/p>\n

\"BYD-Germany\"
BYD Seagull EV (Source: BYD)<\/figcaption><\/figure>\n

That\u2019s a far cry from the 120,000 BYD aims to sell in the country by 2026. Perhaps, as Hedin\u2019s CEO claimed, more control over pricing and distribution will help ramp up output.<\/p>\n

BYD is among several Chinese automakers, including XPeng<\/a> and SAIC\u2019s MG, with plans to expand in Europe. Meanwhile, EVs from China accounted for just 9.9% of European electric car sales last month.<\/p>\n

\"BYD-first-cargo-ship-EV\"
The BYD Explorer No. 1, BYD\u2019s first cargo transport ship (Source: CIMC)<\/figcaption><\/figure>\n

The move comes after the EU announced plans last week<\/a> to cut BYD\u2019s EV import rate from China to 17% from 17.4%.<\/p>\n

Electrek\u2019s Take<\/h2>\n

Although BYD has struggled to gain traction in Europe, sales are expected to pick up as new models roll out.<\/p>\n

Taking control over distribution in Germany is a big win for the company. BYD can now set prices with more flexibility on availability.<\/p>\n

According to the latest European Automobile Manufacturers\u2019 Association<\/em> (ACEA) figures<\/a>, EV registrations in Germany fell 36.8% last month. The drop dragged Europe\u2019s EV market share down to 12.1% from 13.5% a year ago.<\/p>\n

Volkswagen was among those with lower sales in July (-2.2%). The Volkswagen brand had 6.1% fewer vehicle registrations with its market share slipping to 10.8% in July from 11.1% a year ago.<\/p>\n

The lower sales come as Volkswagen aggressively seeks to cut costs. It\u2019s even considering closing Audi\u2019s assembly plant<\/a> in Brussels, which would be its first plant closure in 26 years.<\/p>\n

Meanwhile, Volvo led Europe\u2019s new car registration growth, with over 22,000 vehicles sold in July, up 36.7% year over year. Volvo\u2019s cheapest EV, the EX30, is the main growth driver<\/a>, with over 47,100 models registered through July.<\/p>\n

With the ability to set prices, BYD may be able to match Volvo\u2019s growth. According to research from Rhodium Group<\/em>, BYD earns 14,300 euros ($15,400) on each Seal U model<\/a> sold in Europe. That\u2019s even more than in China with a 1,300 euro ($1,400) profit per unit sold.<\/p>\n

Even with higher tariffs, BYD has the flexibility to offer lower prices. Does Volkswagen have the freedom? It\u2019s not likely.<\/p>\n

It will be interesting to see how the deal impacts BYD\u2019s sales in Germany next year. After topping Honda and Nissan<\/a> to become the seventh largest automaker globally in Q2, BYD looks to overseas markets to boost growth.<\/p>\n

Source: Handelsblatt, Hedin Mobility Group<\/a><\/em><\/p>\n

\n

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China\u2019s leading EV maker, BYD, is making big moves to gain a foothold in Europe. BYD\u2019s latest deal could spell big trouble for Volkswagen in Germany. BYD is taking over its distributor in Germany, allowing it to sell its cars directly in Europe\u2019s largest auto market. On Friday, the Chinese auto giant officially signed an […]<\/p>\n","protected":false},"author":1,"featured_media":8313,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"class_list":["post-76349","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-cars"],"_links":{"self":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/76349","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=76349"}],"version-history":[{"count":0,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/76349\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/media\/8313"}],"wp:attachment":[{"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=76349"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=76349"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=76349"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}