Daimler and BYD Agree on Future Establishment of Joint Auto Venture DENZA
Daimler Greater China Ltd. and BYD Auto Industry Co., Ltd. on December 24 signed an equity transfer agreement to realign the structural setup of their joint venture, Shenzhen DENZA New Energy Automotive Co., Ltd. Following the transfer, Daimler will hold 10% of the equity interest, while BYD will hold 90%. The equity transfer is subject to regulatory approvals and is planned for mid-2022.
BYD also announced that the company’s board of directors had approved the capital increase of Denza by 1 billion yuan ($157 million) from BYD Auto Industry Co., Ltd. and Daimler Greater China Ltd.
BYD responded that the company will pour more resources and core technologies into Denza to help it reach a new level in product research and development, intelligent manufacturing, sales channels and services.
On March 1, 2010, BYD and Daimler signed a memorandum of understanding, in which both parties agreed to jointly invest in building a high-end new energy vehicle brand.
On February 16, 2011, Shenzhen DENZA New Energy Automobile Co., Ltd. was established. Both shareholders have injected capital into it several times. According to data available on Chinese business enquiry platform Tianyancha, in January 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 DENZA X hybrid and pure electric models are currently on sale. In 2022, the auto firm will introduce new models to the Chinese market and will seek further growth opportunities.
At a symposium this month, BYD said that it will launch a high-end brand next year, within a price range of 500,000 to 1 million yuan. The brand will be independent in terms of products, sales service network and operation team. The first model will be an off-road vehicle.
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Regarding the positioning between Denza and existing auto series, BYD responded to Jiemian that in the future, BYD’s auto business will consist of four sectors: dynasty series, ocean series, Denza and the high-end brand.