BERLIN, Aug 30 (Reuters) - China's BYD

will buy its German distributor Hedin Electric

Mobility, BYD and Hedin said on Friday, as BYD moves to

establish itself as a major electric vehicle maker in Europe.

BYD Automotive GmbH will take charge of the sales activities

of BYD vehicles and parts in the German market, as well as

management of its stores in Stuttgart and Frankfurt, BYD said,

adding that the deal was subject to approval and expected to

close in the fourth quarter.

The move will allow BYD to take greater control of its

strategy in the country, where sales totalled just over 4,000

last year but have slumped this year so far in line with an

industry-wide crash in EV demand.

Hedin, a Swedish mobility group which also manages the

distribution of other Chinese car brands including XPeng ( XPEV ) and

Hongqi, previously managed BYD's relationships to six dealers

across Germany to ease the Chinese EV maker's entry into the

European market.

BYD also works with other dealers in Germany including

Sternauto, which set up

a store

in Berlin for the brand earlier this year.

Hedin Automotive eMobility GmbH will carry on selling

BYD cars in three German cities, BYD said.

BYD, which produces batteries as well as EVs and leads

electric car sales in China, has expanded its global presence in

recent months, laying the groundwork for manufacturing sites in

Europe

and

Mexico

.

The company is targeting

a 20% jump

in annual sales for the year, offering aggressive discounts

for its best-selling EVs to secure its leadership position.

Overseas shipments accounted for 11.9% of BYD's total sales in

the first seven months of the year, with Britain emerging as its

strongest market in Europe.