China’s leading EV maker, BYD, is making big moves to gain a foothold in Europe. BYD’s 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’s largest auto market.
On Friday, the Chinese auto giant officially signed an agreement with Hedin Mobility Group to buy out its subsidiary, Heden Electric Mobility.
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.
“Together with its retail partners, BYD will further extend outstanding customer services and warranty support in Germany,” BYD’s executive vice president, Stella Li, said.
In addition to gaining control of distribution, BYD will also take over two flagship stores in Stuttgart and Frankfurt, Germany.
BYD Dolphin (left) and Atto 3 (right) Source: BYD
BYD is on the move in Germany
Anders Hedin, CEO of Hedin Mobility Group, explained, “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.”
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’s dealer and retailer in the Swedish market.
Michael Shu, Managing Director of BYD Europe, speaks at the IAA (Source: BYD)
Although no prices were revealed, Germany’s Handelsblatt reported it could be in the “low double-digit million” range with outstanding debts demanded by Hedin.
BYD’s 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.
BYD Seagull EV (Source: BYD)
That’s a far cry from the 120,000 BYD aims to sell in the country by 2026. Perhaps, as Hedin’s CEO claimed, more control over pricing and distribution will help ramp up output.
BYD is among several Chinese automakers, including XPeng and SAIC’s MG, with plans to expand in Europe. Meanwhile, EVs from China accounted for just 9.9% of European electric car sales last month.
The BYD Explorer No. 1, BYD’s first cargo transport ship (Source: CIMC)
The move comes after the EU announced plans last week to cut BYD’s EV import rate from China to 17% from 17.4%.
Electrek’s Take
Although BYD has struggled to gain traction in Europe, sales are expected to pick up as new models roll out.
Taking control over distribution in Germany is a big win for the company. BYD can now set prices with more flexibility on availability.
According to the latest European Automobile Manufacturers’ Association (ACEA) figures, EV registrations in Germany fell 36.8% last month. The drop dragged Europe’s EV market share down to 12.1% from 13.5% a year ago.
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.
The lower sales come as Volkswagen aggressively seeks to cut costs. It’s even considering closing Audi’s assembly plant in Brussels, which would be its first plant closure in 26 years.
Meanwhile, Volvo led Europe’s new car registration growth, with over 22,000 vehicles sold in July, up 36.7% year over year. Volvo’s cheapest EV, the EX30, is the main growth driver, with over 47,100 models registered through July.
With the ability to set prices, BYD may be able to match Volvo’s growth. According to research from Rhodium Group, BYD earns 14,300 euros ($15,400) on each Seal U model sold in Europe. That’s even more than in China with a 1,300 euro ($1,400) profit per unit sold.
Even with higher tariffs, BYD has the flexibility to offer lower prices. Does Volkswagen have the freedom? It’s not likely.
It will be interesting to see how the deal impacts BYD’s sales in Germany next year. After topping Honda and Nissan to become the seventh largest automaker globally in Q2, BYD looks to overseas markets to boost growth.
BYD’s cheapest EV in China just got even more affordable. After cutting prices this month, the BYD Seagull EV starts at just 56,800 yuan, or under $8,000.
BYD cuts Seagull EV price to under $8,000 in April
Despite an intensifying EV price war in China, BYD is cutting prices once again. The Chinese EV giant announced a new promotion this month across several Ocean Series models, including the Seagull.
The 2025 BYD Seagull EV is available starting at just 56,800 yuan ($7,800). The offer is for the non-Smart Driving Vitality Edition model, which usually starts at 69,800 yuan ($9,500).
After launching the new Seagull last year, BYD said the low-cost electric car officially opened “a new era of electricity being lower than oil.” Earlier this year, it upgraded most of its vehicles, including the Seagull, with its new “God’s Eye” smart driving system at no extra charge.
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BYD’s Seagull is offered in three trims in China: Vitality, Freedom, and Flying. It has two battery options, 30.1 kWh or 38.9 kWh, which is good for the 305 km (190 mi) and 405 km (252 mi) CLTC range, respectively.
BYD cuts vehicle prices in April 2025, including the Seagull EV (Source: BYD)
At just 3,780 mm long, 1,715 mm wide, and 1,540 mm tall, the Seagull is even smaller than the former Chevy Bolt EV (4,145 mm long, 1,765 mm wide, and 1,611 mm tall). It’s about the size of a Fiat 500e.
BYD Seagull EV (Dolphin Mini) testing in Brazil (Source: BYD)
The price cut comes as BYD’s sales continue surging. With another 377,420 new energy vehicles (EVs and PHEVs) sold last month, the Chinese automaker has now sold over one million NEVs in 2025.
BYD’s EVs accounted for 416,388 while PHEV sales reached 569,710, an increase of 39% and 76% from last year, respectively.
Perhaps even more importantly, BYD sold over 206,000 vehicles overseas in 2025, more than doubling from last year. The Seagull EV is also sold in other global markets like Mexico and Brazil as the Dolphin Mini.
Later this year, it will launch in Europe as the Dolphin Surf, with expected prices starting under £20,000 ($26,000). Although it may not be the cheapest EV, BYD’s executive vice president, Stella Li, recently told Autocar it will be “the best value” when it arrives.
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Prior to the launch, only a fully loaded $60,000 Launch Edition Model Y was available to order since January, and had been delivered since early March.
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Now, North American buyers are able to buy a much cheaper version of the new Model Y for $49,000.
Only the Model Y Long Range AWD is available for now, but that’s Tesla’s most popular model in North America.
At the time, we noted that this is a great demand test for Tesla in the US amid some critical brand issues due to CEO Elon Musk.
We only have a few metrics to track the demand of the new Model Y in the US:
Delivery timelines on new orders
Available inventory
Discounts/incentives
For most US zip codes tested by Electrek with different Model Y configurations (wheels and paint colors), Tesla quotes delivery within “1-3 weeks”.
But we also found several zip codes on both the West Coast and the East Coast where Tesla claims it can deliver the new vehicle “today”:
This would point to Tesla already having vehicles in inventory despite launching it just 4 days ago.
But Tesla is hiding the inventory.
If you search for Model Y in Tesla’s new inventory, you can’t find any in the US at the time of writing:
However, Tesla is showing some units in inventory to people configuring new Model Ys.
Some potential buyers are reporting that Tesla has a tab that pops up and directs them to some new inventory available (via TroyTeslike on Patreon):
This confirms that Tesla already has new non-Launch Edition Model Y in inventory available for sale in the US – pointing to Tesla having no backlog of demand for the new vehicle.
Electrek’s Take
This is much worse than I thought. I thought that Tesla would build a backlog of demand for the new Model Y in the US from people who didn’t want the fully loaded version, but it looks like that backlog lasted 4 days.
Of course, it’s all because of Tesla and Elon, and brand destruction.
Many people who invested in the stock market lost a lot of money over the last few weeks, and these people often happen to be people who buy new cars.
Now, the only thing left is for Tesla to start offering discounts and subsidies financing – the latter likely coming first, as it is already the case with new Model 3 orders in the US.
The good news for Tesla is that if Trump continues to crash the stock market, the Fed will likely have to reduce rates, making Tesla’s 0% financing cheaper to subsidize.
That’s a fun balancing act.
Either way, I wouldn’t be surprised to see Tesla offer incentives on the new Model Y in the US within the next 2 weeks – way ahead of schedule.
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The new and improved 2026 Kia EV9 and 2025 EV6 are eligible for the $7,500 federal EV tax credit, but one trim is excluded.
Do the Kia EV6 and EV9 qualify for the federal tax credit?
Kia’s first dedicated electric vehicle, the EV6, received some pretty major upgrades for its mid-cycle update this year.
The 2025 EV6 features a bigger battery providing more range (now up to 319 miles), a stylish interior and exterior redesign, and an NACS port for charging at Tesla Superchargers.
Kia’s first three-row electric SUV, the EV9, also has a native NACS charging port and will be the first model year to offer a high-performance GT trim.
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We got a good look at the EV9 GT at the LA Auto Show last year (check it out here). The sporty electric SUV boasts 501 hp, which is quite a bit more than the current GT-Line’s 379 hp. The added power is enough for the big-body SUV to move from 0 to 60 mph in just 4.3 seconds.
Although Kia America’s vice president of sales, Eric Watson, confirmed the EV6 and EV9 are now in “full-scale production” at its plant in West Point, Georgia, not all trims will qualify for the $7,500 federal tax credit.
According to CarsDirect, Kia told dealers that the 2025 EV6 and 2026 EV9 GT trims wouldn’t be eligible for the credit. A spokesperson said the exclusion is because Kia builds the EV6 GT and EV9 GT in South Korea, while all other trims are assembled in Georgia.
If Trump’s 25% tariff on South Korea is still in effect when the GT models launch in the US, it could create a significant price gap between trims.
Despite this, you will likely still be able to take advantage of the credit through leasing. Kia, like many, is passing the $7,500 on through lease cash, which can significantly cut monthly payments.
Kia will reveal more info, including prices, closer to launch. Check back soon. We’ll keep you updated with the latest.
With the new models arriving soon, Kia is offering clearance pricing on outgoing models. Monthly leases start as low as $179. You can use our links below to find deals on the Kia EV6 and EV9 near you.
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