October 3, 2024 – Stuttgart, Germany:- Denza, a luxury car brand co-founded by Mercedes-Benz in 2010, has recently transitioned to full ownership under BYD. This shift comes after reports revealed that Mercedes-Benz sold its remaining 10% stake in the company, following its previous reduction of ownership in 2021. The change in ownership comes as Denza prepares to launch its new flagship model, the Z9 GT electric wagon, which aims to rival high-performance vehicles like the Porsche Taycan.
Initially founded as a joint venture between Mercedes-Benz and BYD, the partnership was intended to blend BYD’s expertise in electric vehicle technology with Mercedes-Benz’s luxury design and engineering. However, over the years, the collaboration evolved, leading to Mercedes-Benz’s gradual exit from the brand. Industry analysts speculate that one reason for the recent sale may be the upcoming EU tariff increase on Chinese EV imports, which could significantly impact profit margins. BYD currently faces a 17% tax rate, while other brands could see tariffs as high as 36.3%.
The Denza Z9 GT is poised to be the brand’s electric flagship and represents Denza’s effort to capture a share of the luxury EV market. Recent reports indicate that the Z9 GT has undergone testing in Europe, benchmarking against prestigious models like the Porsche Panamera and Ferrari GTC4Lusso. According to Chinese government filings, the Z9 GT will produce an impressive 710 kW, or approximately 950 horsepower, powered by three electric motors. The vehicle will also feature BYD’s blade battery technology, known for its safety and efficiency.
Denza’s current lineup in China includes both electric and plug-in hybrid models, with all recent releases debuting after a significant restructuring in 2021. This restructuring was aimed at revitalizing the brand, following dissatisfaction from Mercedes-Benz executives regarding Denza’s market performance. While Denza has seen success in regions like Hong Kong with right-hand-drive models, there are no announced plans for expansion into Australia, despite growing demand for luxury EVs in that market.
Denza’s full ownership by BYD marks a pivotal moment for the brand, especially as it prepares to launch the Z9 GT. The departure of Mercedes-Benz raises questions about Denza’s future strategy, particularly in light of shifting regulatory environments and market dynamics. The Z9 GT’s upcoming release will be closely watched by industry analysts as Denza seeks to solidify its position in the competitive luxury EV segment.
Meanwhile, Mercedes-Benz’s AMG division is reportedly developing an electric supercar that could succeed the SLS Electric Drive, which was unveiled at the 2012 Paris Auto Show. The new model is rumored to feature cutting-edge battery technology and a design inspired by the classic 1950s Mercedes-Benz 300SL. With Mercedes-Benz already investing in silicon-anode battery tech from U.S.-based Sila, this new supercar could be a breakthrough in the company’s electrification strategy.