Denza becomes BYD's premium brand
- The BYD brand has certainly been making strong progress on the Chinese market for two years, but until then it suffered from a disadvantage compared to its local competitors (SAIC, FAW, Dongfeng, Geely, Changan, Chery, Great Wall), that to be able to distribute only one mainstream brand covering all segments. A Premium brand that would succeed in attracting export customers would enrich BYD's catalogue and could increase the carmaker's profitability while raising its brand image. This is what BYD managed to do thanks to the purchase of 40% of the 50% that Mercedes held in the Denza brand created in 2010 with BYD, the latter already holding 50%. With 90% of Denza's shares, BYD becomes the full owner.
- BYD is taking the opportunity to make Denza its new Premium brand. This could soon be imported to Europe.
- Let us add that the Denza brand created by BYD and Mercedes in 2010 was from the start dedicated to the production of electrified cars (BEV and PHEV), which was a strategy widely used at that time by carmakers established in China, most of them local carmakers deciding to create brands specializing only in electrified cars. Unfortunately, not all of these brands have survived.
- As for the Denza brand, it has never experienced incredible sales figures, the volume from 2010 until the acquisition by BYD in 2022 not exceeding 25,000 units in total, which represents an average of 2,500 sales per year… BYD now has free hands to develop the Denza brand according to its own strategy and expand its customer base upwards.