Mercedes Exits, BYD Takes 100% Stake

BYD and Mercedes-Benz's high-end new energy vehicle brand, Denza, has recently experienced a significant equity change.

In September of this year, the new energy giant BYD increased its stake in Denza from 90% to 100%, while the globally renowned car manufacturer Mercedes-Benz withdrew from this new force in car manufacturing.

In response to the media, Denza stated that this would help BYD better integrate internal resources and optimize strategic layout.

Looking back at the development process over the past decade, Denza has gone through a gradual exploration, launching models like the Denza D9 to capture the high-end new energy market.

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With Mercedes-Benz's exit and BYD's 100% stake, Denza has transitioned from a joint venture to a self-branded car company.

According to information from Tianyancha, on September 14th, Shenzhen Denza New Energy Automobile Co., Ltd. (hereinafter referred to as Denza) underwent equity and business changes, with BYD Auto Industry Co., Ltd.'s stake increasing from 90% to 100%, and the originally 10% stakeholder Mercedes-Benz (China) Investment Co., Ltd. exited the shareholders' list.

At the same time, the former director of Denza, Hans Georg Engel, also stepped down.

This signifies that BYD and Mercedes-Benz have ended their 14-year car-making cooperation, and Denza has become a self-branded car company.

In response to a reporter from Southern Metropolis Daily, Denza stated that this would help BYD better integrate internal resources and optimize strategic layout.

This is also a way to concentrate advantageous resources, enhance the competitiveness of the Denza brand, and serve users.

Additionally, media reports suggest that after becoming the sole owner of Denza, BYD may not rule out the possibility of cooperating with Mercedes-Benz in other sectors again, and both parties may explore other cooperation opportunities in the new energy vehicle field in the future.

After 14 years of joint exploration and progress, Denza has experienced ups and downs to find its development positioning.

Looking at the history of Denza's birth, in March 2010, BYD and Daimler, the parent company of Mercedes-Benz, signed a cooperation memorandum; in February 2011, BYD and Daimler jointly established Shenzhen BYD Daimler New Technology Co., Ltd., each holding 50% of the shares, and launched a new car brand - Denza (DENZA), aiming to build a high-end Chinese brand electric vehicle.

After the establishment of the Denza brand, BYD and Mercedes-Benz provided tremendous support in technology, capital, marketing, and other aspects.

However, at that time, the new energy vehicle market environment was not yet mature, and the development of Denza was not smooth.

In April 2012, Denza's first concept car was unveiled at the Beijing International Auto Show; in September 2014, Denza's first mass-produced car, the Denza 300, was launched; it later released models such as the Denza 400 and Denza 500, but all had poor sales.

Data from the Passenger Car Association shows that from 2015 to 2018, Denza's sales were 2,800 units, 2,287 units, 4,713 units, and 1,974 units respectively, with a cumulative sales volume of 11,774 units over four years.

In November 2016, BYD Daimler New Technology Co., Ltd. was renamed Shenzhen Denza New Energy Automobile Co., Ltd.

In November 2019, Denza also launched the Denza X (pure electric/hybrid version) model.

At the end of 2021, the two shareholders increased their capital in Denza by 1 billion yuan, bringing the registered capital to 7.76 billion yuan.

At the same time, BYD also announced that it had signed an equity transfer agreement with Mercedes-Benz regarding the adjustment of Denza's new energy structure.

After the transfer was completed, BYD and Mercedes-Benz would hold 90% and 10% of Denza's shares respectively, with plans to complete it by mid-2022.

In July 2022, Denza completed the equity change.

At that time, BYD stated in a conference call that the strategic development of Denza would be led by BYD with the support of Mercedes-Benz.

As a result, BYD began a comprehensive reform of Denza's technology, products, and channels, positioning Denza as a new energy luxury brand, aiming at the passenger car market in the 300,000 to 800,000 yuan range.

Since then, Denza has successively launched models such as the Denza D9, N7, N8, Z9, and Z9GT.

In particular, the Denza D9, which was officially launched in August 2022, has a starting price in the 320,000 yuan range and has become the main sales force.

In 2023, Denza's cumulative sales reached 127,800 units, with the Denza D9 accounting for more than 93% of the total sales.

Recently, data disclosed by BYD shows that from January to August this year, Denza's cumulative sales reached 79,894 units, of which the Denza D9 sold 71,342 units.

According to relevant data statistics, the sales volume of the Denza D9 has exceeded 200,000 units, actively capturing the new energy luxury MPV market.

In addition, the SUV models launched by Denza - the N7 and N8 models - had a combined sales volume of about 8,600 units from January to August this year, accounting for about 10% of Denza's total sales.

Furthermore, the Denza Z9 is scheduled to be launched on September 20th this year, aiming to capture 30% of the "56E" (BMW 5 Series, Audi A6, Mercedes-Benz E-Class) market.

It is also understood that this year, Denza has opened up a dealership franchise model, intending to explore the second and third-tier markets to reach a broader consumer base.

Currently, Denza's product lineup includes a full range of models such as the D9, N7, and Z9GT.

In August this year, at the 2024 Denza Automobile Technology Day, BYD's Chairman and President Wang Chuanfu reviewed Denza's growth path, describing it as "arduous and tortuous".

He stated that Denza was the first luxury brand in Chinese automotive history to focus on new energy and was also the first new force in car manufacturing in China.

However, due to insufficient brand recognition and channel mismatch at the time, Denza's development was not smooth for a long time after its establishment.

But Wang Chuanfu also said that in recent years, Denza launched its first luxury MPV, the Denza D9, which, with precise product positioning and leading product strength, has surpassed traditional luxury brands and become the sales champion of the MPV market in 2023.

"Behind these achievements, first of all, we must thank Mercedes-Benz for its strong support, allowing Denza to be born with a luxury foundation and genes; it also allowed BYD to learn valuable experience in building luxury brands."