Daimler and BYD agree on future DENZA automotive joint venture
Daimler Greater China Ltd. and BYD Auto Industry Co., Ltd. signed a capital transfer agreement on December 24 to realign the structural configuration of their joint venture, Shenzhen DENZA New Energy Automotive Co., Ltd. After the transfer, Daimler will own 10% of the stake, while BYD will hold 90%. The capital transfer is subject to regulatory approvals and is scheduled for mid-2022.
BYD also announced that the company’s board of directors has approved Denza’s 1 billion yuan ($ 157 million) capital increase from BYD Auto Industry Co., Ltd. and Daimler Greater China Ltd.
BYD responded that the company would invest more core resources and technologies in Denza to help it reach a new level in product research and development, smart manufacturing, sales channels and services.
On March 1, 2010, BYD and Daimler signed a memorandum of understanding, in which the two parties agreed to jointly invest in building a brand of premium new energy vehicles.
On February 16, 2011, Shenzhen DENZA New Energy Automobile Co., Ltd. was created. The two shareholders injected capital into it on several occasions. According to data available on the Chinese business intelligence platform Tianyancha, in January of this year, its registered capital rose from 5.06 billion yuan to 5.76 billion yuan, an increase of 13.83%.
Denza’s official website shows that the hybrid and pure-electric DENZA X models are currently on sale. In 2022, the automaker will introduce new models to the Chinese market and seek new growth opportunities.
At a symposium this month, BYD announced that it will launch a premium brand next year, with a price range of 500,000 to 1 million yuan. The brand will be independent in terms of products, sales service network and operations team. The first model will be an all-terrain vehicle.
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Regarding the positioning between Denza and existing auto series, BYD responded to Jiemian that in the future, BYD’s automotive business will include four segments: Dynasty Series, Ocean Series, Denza and Premium Brand. .