Chinese electric car maker BYD has signed a contract with German car rental company Sixt to sell around 100,000 EVs between now and 2028.
The deal is focused on Europe, where BYD is ramping up its presence, launching several models this year. This deal represents significant volume for the company that is considered one of Tesla’s main competitors.
The first step will involve buying a “several thousand” Sixt BYD Atto 3 seconds – a vehicle has been sold in Australia and has been evaluated here – before the end of 2022, for charter fleets in Germany, France, the Netherlands and the UK.
But this initial order only forms the “first step” in a broader deal that is expected to buy around 100,000 more EVs over the next six years.
Sixt says it wants its fleet of vehicles in Europe to be ‘electrified’ by 70 to 90 per cent by 2030, covering a wide range of car manufacturers and models.
From there, BYD and Sixt said they would “explore potential partnership opportunities in different regions of the world.” Sixt has a market in Australia, so keep an eye on this space…
The BYD and Sixt deal is symbolic of a broader trend in the car world, where OEMs enter into major EV supply contracts with rental companies. In addition to generating sales, it is also more profitable for the seat, as a promotional tool.
For example, Polestar and Hertz have agreements for tens of thousands of EV including some for Australiawhile the same rental company is also buying 175,000 electric vehicles from General Motors.
Michael Shu, director of BYD’s European and International Cooperation, said Sixt is “a very important key partner for BYD as we take our first steps into the rental market”.
“…These are exciting times for BYD, as our market-leading solutions provide greater accessibility and more options for electric mobility,” he added.
Sixt’s chief sales officer, Vinzenz Pflanza, calls the deal “an important milestone in delivering on our promise to bring significantly more e-vehicles onto the streets. We are looking forward to working with BYD.”
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