Daimler and BYD will reshare the failed brand Denza. New items promised in 2022
Established in 2010 on an equal footing, BYD Daimler New Technology (BDNT) and its brand name Denza (Shenzhen DENZA New Energy Automotive) have not achieved notable success in the Chinese market, and now the German company provides the Chinese side with a significant part of its 50% Formally Daimler remains in business, but in fact BYD will continue to “lead” the joint venture.
BDNT was founded in the early days of mass-produced electric vehicles in China, and by all appearances, had every chance of success. The first-born of the Denza brand was the first-generation Mercedes-Benz B-Class (W245) compact MPV, converted into an electric car: its double floor was ideal for placing the battery, the body design was slightly changed in the Chinese style, and in this form it entered the market in 2014.
Denza 500
During its life cycle in Shenzhen, the Denza compact MPV underwent two upgrades, during which the range per charge increased from 350 km to 400 km and 500 km, respectively. The latest version, called the Denza 500, was introduced in 2018 and, in addition to the modified hardware, received an updated design, but restyling did not help: already in 2019, the model left the market. According to CarSalesBase, its cumulative sales in less than six years of production were 14,055 units.
Denza x
To replace the Mercedes BDNT converted into an electric car in 2019, the Denza X mid-size crossover was prepared in hybrid and purely electric versions. From a technological point of view, Denza X turned out to be a copy of the Chinese BYD Tang crossover, and Daimler's participation in this case was reduced to design: there are Mercedes-Benz-style lettering on the outside of the body and inside. Unfortunately, this car also turned out to be unsuccessful: 4175 copies were sold in 2020, 4268 in 11 months of this year. By the standards of the Chinese market, these are crumbs, it is impossible to run such a successful business on it.
Denza x
The Denza X electric car in China is at the level of the Tesla Model Y, but at the same time it has neither the glory nor the charisma of the “American”, and the range on a single charge is about 100 km less than before the Model Y. The Mercedes-Benz style lettering is not plays a big role if you can buy a real Mercedes-Benz – the German brand is now leading an active offensive in China. BYD Tang, by the way, sells much better than its sister Denza X: from January to November of this year, 45,204 copies were sold.
Denza x
In a word, it is clear that the Denza brand made a mistake somewhere and something needs to be done with the joint venture. Shenzhen DENZA New Energy Automotive will complete its restructuring by the middle of next year, increasing BYD's stake from 50% to 90% and Daimler's stake from 50% to 10%, according to a new Daimler press release. Daimler will remain in the joint venture as a shareholder and is unlikely to have anything to do with the future of Denza innovations. New items are promised in 2022, but it is not yet known what kind of car it will be, probably premium versions of BYD models.
Denza x
Recall that BYD has its own production of batteries and batteries for them, thanks to which it feels confident in the “socket” segment of the Chinese market – it occupies 18% of its volume (data from the CleanTechnica resource). Only the SAIC concern has a higher share – 21%, Tesla is in third place – 9%.