Shenzhen BYD New Energy Co., Ltd., trading asDenza, is an automobile manufacturing company headquartered in Shenzhen, China, specialising in luxury electric cars and a joint venture between BYD Auto Industry and the Mercedes-Benz Group (previously Daimler AG). Founded in May 2010, in late 2014 the company introduced its first model, the Denza EV. The car was initially put on sale in selected Chinese cities only.[2] In late 2021, Denza underwent a restructuring as Mercedes-Benz reduced its share to 10%, while BYD held the rest.[3]
Name
An invented name from the Chinese Tengshi (simplified Chinese: 腾势; traditional Chinese: 騰勢; pinyin: Téngshì), Denza roughly translates to "rising power and momentum".[4] Alternative translations include "wind power" or "winding circumstances".
History
Early period (2010–2021)
Denza all-electric concept car at Auto Shanghai 2013
On 1 March 2010, BYD Auto and Daimler AG signed a memorandum of understanding for the joint development of electric vehicles.[5] That initial link-up led to the creation of a new, equal-ownership legal entity, Shenzhen BYD Daimler New Technology Co., Ltd., which was formally established on 27 May 2010[6][7] and received a business license from the Chinese state in March 2011.[8] Its brand name, Denza, debuted in March 2012, and a new energy vehicle (NEV) concept car was first shown in April 2012 at the Auto China motor show in Beijing.[9] It was expected that this product would be offered as a luxury car.[10]
While its initial product was set to be launched in Beijing, Shanghai, and Shenzhen in September 2014,[11] in June of that year the launch date was pushed back to late 2014,[12] and the car debuted in December of that year.[2]
At that time, sales of new energy vehicles depend on subsidies provided by the Chinese government. When Denza launched its first car in December 2014, purchasers of the car qualified for a RMB 78,000 subsidy[2] and while the total subsidy on offer depends on location of purchase, no more than RMB 120,000 can be deducted.[11] As of 2014, buyers were exempted from Beijing's license plate lottery and qualified for free plates in Shanghai and Shenzhen.[11]
In 2018, the Denza EV underwent extensive body restyling, changing its name to Denza 500.[13] In November 2019, Denza presented its second model based on the second-generation BYD Tang. The vehicle was designed with significant participation of Mercedes-Benz designers,[14] which handled exterior and interior design.[15] Sales of the Denza X started at the end of 2020 exclusively on the Chinese market.[16]
Restructuring (2021–present)
In February 2021, the German business daily Handelsblatt reported that the relations between Denza's co-owners were in crisis, as its sales did not meet the expectations of Mercedes, which allegedly expressed a desire to end the venture. However, this information was denied.[17] Due to the uncertain future of Denza, a recovery plan was prepared and changes in the joint venture structure was announced in December 2021. The unpopular Denza X SUV was discontinued, and the alliance changed its name to Shenzhen Denza New Energy Vehicle Co., Ltd. In turn, Mercedes-Benz Group reduced its shares from 50% to 10% in favor of BYD's higher stake of 90%.[18]
The first model since the restructuring, the Denza D9 minivan was introduced in August 2022. The D9 is available in plug-in hybrid and battery electric variant.[19] At the same time, the company announced the expansion of its dealer network in China with a plan to open 270 new points by the end of 2022 throughout the country.[20] In March 2023, Denza introduced its second new model after restructuring, the Denza N7 battery electric SUV.[21][22] In the same month, the range was expanded with a larger SUV Denza N8, which is based on the Denza X.[23]
