Everything you need to know about Denza, an experiment by BYD and Mercedes-Benz

Mercedes-Benz of Germany (then Daimler) and BYD of China established a 50:50 joint venture company named ‘Shenzen BYD Daimler New Technology Co’ in 2010, which was signed in Stuttgart.

For some context, at the time, the Hong Kong-listed BYD Company was a leading battery manufacturer but an emerging automaker.

Still, investor confidence has grown since Warren Buffet’s Berkshire Hathaway bought a 10% stake in 2008 (for a ridiculously low $230 million today).

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Meanwhile, Mercedes-Benz, like every other car company on the planet, pivots to China’s insatiable luxury market and its burgeoning middle class.

It also (correctly in hindsight) at the time considered China the best emerging place to sell electric cars due to its lucrative subsidies and to learn what to learn.

After the joint company was established in 2010, the Denza brand (Tengshi in China) was launched in March 2012. It is considered the first joint venture between an international car manufacturer and an auto manufacturer. Local car production focuses exclusively on low-emission vehicles.

BYD President and Founder, Wang Chuanfu, summed up at the brand launch: “We have the ideal partner, Daimler. BYD provides experience in battery technology and electronic powertrains, as well as putting electric vehicles on the road in China.

“Regarding Daimler’s premium automotive design, electric vehicle safety and architecture know-how and over 125 years of experience in automotive excellence, Denza is on the right track to become the leads the New Energy Vehicles market in China, he added.

By September 2014, the two parent companies had jointly invested more than 300 million euros in the shared company and that month announced the production of the road car of the same name; a tall small hatch with a 48kWh BYD lithium iron phosphate battery and claims a range of 300 km.

Things have been going pretty slow by China’s electric car standards for a while. Updated versions of the vehicle debuted with an increasingly larger range in 2017 and 2019, while an SUV called the Denza X appeared in late 2019, based on the BYD Tang.

So far, all we have is a small EV that looks like an older generation Mercedes B-Class that’s sold in fairly modest numbers in China. Not exactly change the earth.

By December 2021, Mercedes-Benz decided it had everything – including a burgeoning relationship with another Chinese giant, Geely, led by a joint venture agreement to operate operating Smart – and most have left.

The company cut its holding in what was then known as Shenzhen Denza New Energy Automobile Company to 10%, transferred the rest of the equity to BYD and now holds 90% shares.

“Both Daimler and BYD remain committed to their successful long-term partnership,” states a Mercedes-Benz press release, promising “opportunities for further growth with new models in 2022.” “.

“Through the development of the Denza brand, both Daimler and BYD have gained valuable experience and insight into customers in China’s premium NEV market, the largest and most dynamic market in the world. ,” it added.

New vehicles have been promised and new vehicles have been delivered, most of which are now under BYD management.

The Denza D9 is the first all-new taxi to hit the market in May 2022. It is a luxury passenger car with three rows of seats with pure plug-in or electric hybrid drive, equipped with latest interior technology and supported by the rapid expansion in the brand store.

The result was 30,000 customer orders in three months.

In early 2023, the brand’s second model appeared. It’s a sporty crossover called the Denza N7, based on the Denza Inception concept introduced last year. It runs on electricity naturally, with reports claiming 395 kW of power, BYD Blade batteries, BYD’s 3.0 electronics platform, and even built-in LiDAR.

And that is where we are now. It is claimed that by the end of 2023, Denza stores will cover 130 Chinese cities across the country. BYD says the company will soon offer one more SUV (called the N8) and one more sedan, and continues to sell both electric and hybrid vehicles.

BYD Auto certainly doesn’t lack funding or ambition, which bodes well for Denza’s future. As the parent company continues to grow at a rapid pace, it will expand further into international markets.

Perhaps the future of Denza is to take its place as BYD’s midsize brand, with Recently released Yangwang nametag marked as flagship.

Time will tell whether it is really young again after many years or if its star dims once more.

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