In a strategic move reflecting the evolving landscape of the Chinese auto industry, Chinese automaker BYD Co. has completed the acquisition of the remaining 10% shares held by Mercedes-Benz Group AG in their joint venture focused on the Denza premium electric vehicle brand. The partnership, which spanned 13 years, initially saw BYD and Mercedes holding equal stakes in the venture known as Shenzhen BYD New Energy Co. Established in 2011, the venture aimed to tap into the growing market for premium EVs.
This development comes at a time when foreign carmakers are reevaluating their positions in the Chinese market amidst increasing trade tensions between China and Europe. The European Commission's proposal to impose additional tariffs on Chinese EVs, potentially reaching 36.3%, has added complexity to international automotive trade dynamics.
After facing challenges with sales, Mercedes, formerly known as Daimler, had reduced its stake in the joint venture to 10% in 2021. However, following a strategic overhaul, Denza has witnessed a revival in its fortunes, particularly with its line of luxury people mover vans. Notably, the Denza D9 minivan emerged as the top-seller in its category in 2023, reflecting renewed consumer interest and confidence in the brand.
Looking ahead, Denza is gearing up to launch its latest model, the Z9GT, this week. Media reports suggest that the Z9GT is expected to carry a pre-sale price starting at 339,800 yuan ($47,900), positioning it as a competitive offering in the premium electric vehicle segment in China. As BYD consolidates its control over the Denza brand, the company is poised to leverage this strategic move to further strengthen its presence in the dynamic Chinese electric vehicle market.