Retail

The EV maker said "it is becoming increasingly challenging to secure vehicle transportation capacity and at a reasonable cost," but some analysts were also concerned about demand for high-ticket items due to the weakening global economy.

A trade deal that puts India in a competitive situation or gives it an advantage over other markets where Mercedes produces cars would "definitely help," Mercedes' India chief, Martin Schwenk, said.

Hedin is Europe's 13th biggest dealer group and is partnering with BYD to launch European sales of electric vehicles from China's largest EV manufacturer.

The UK is the latest European target market for BYD in its push to build a presence outside China.