BYD Company, the Chinese automaker, has taken over full control of Denza, its joint venture brand with European Mercedes-Benz Group AG, Bloomberg reported.
The report said that on September 16, BYD acquired Mercedes' 10 per cent shares in the JV, which focuses on premium electric vehicles (EVs). The company statement disclosed no value for the deal, and the China spokesperson for Mercedes declined to comment, it added.
This ended a 13-year partnership between BYD and Mercedes-Benz, and comes as many foreign auto manufacturers are pulling back from China, the world’s biggest auto market, due to trade tensions.
The report noted that the European Commission is currently considering imposing additional tariffs of up to 36.3 per cent on Chinese EVs. It added that member states are scheduled to vote on the proposal next week.
According to a Nikkei report, Mercedes issued a statement saying its technology has not been incorporated into current Denza models. The report added that the German car maker remains invested in its Chinese JVs with Zhejiang Geely Holding Group and BAIC Motor.
Denza was incorporated as Shenzhen BYD New Energy Company in 2011 as a 50-50 joint establishment between China's BYD and German automaker Daimler (now called Mercedes-Benz), according to the report.
It is focused on premium EVs but poor sales led to Mercedes cutting its stake to 10 per cent in 2021.
Denza underwent a “strategy reset” in 2022 and has gained popularity in its luxury people-mover van market with its D9 minivan, as per the report. The particular vehicle ranked as the best-seller in the category for 2023.
According to local media reports, Denza is set to launch its Z9GT model later this week with a pre-sale price that starts from 339,800 yuan ($47,900).
BYD has been expanding its luxury lineup, including the Denza Z9GT, a shooting-brake-style design with a heavy emphasis on technology. In February, it rolled out its $200,000-plus Yangwang U9 supercar to rival offerings from Ferrari NV and Lamborghini.
The company aims to sell 500,000 vehicles outside China this year and double that in 2025. It also plans to build its first European car factory in Hungary.
(With inputs from Bloomberg)
