It marked the end of the joint venture of Mercedes-Benz and BYD after 13 years, targeting the growing Chinese electric vehicle market. The German luxury car manufacturer sold its last remaining 10% stake in the Denza brand so that BYD would take full control of the venture.
History of the Venture
Mercedes-Benz and BYD operated since 2010 as 50:50 joint ventures to establish Shenzhen BYD Daimler New Technology Co., Ltd (BDNT). The concept of the venture was to manufacture premium electric vehicles for the Chinese market. Denza was the brand that came through the cooperation. However, it was a bumpy venture having poor sales and inefficiencies. Having sold only 14,000 units cumulatively from 2014 to early 2021.
Current Position
The German manufacturer announced on September 17, 2024 that it would liquidate its remaining shares in Denza. The Denza brand remains solely in BYD’s hands and will be continued autonomously. Despite their many setbacks during this partnership, BYD has managed to resurrect the Denza line with fresh new models such as D9 MPV, they will also launch the Z9GT SUV.
Also Read: MG Select: To Redefine Luxury Cars In India
After Effects of Mercedes-Benz Exit
Mercedes-Benz’s exit signals a strategic pivot as it focuses on strengthening its core brand. Rather than competing in an extremely challenging market segment dominated by local players. A growing caution among global automakers regarding investments into China can also be inferred from this move. The near future of luxury electric vehicles in China, with BYD having majority share in Denza, now entirely under its control
ELCTRIK Speaks
Even as Mercedes-Benz divests itself from its joint venture with BYD, which is a major strategic change, it displays the intricacies and challenges foreign carmakers face as they try to navigate China’s dynamic automotive market.
