Mercedes, BYD end tie-up for Denza premium EVs

BYD has moved to fully control a joint venture it had in China with Mercedes-Benz, as an increasing number of foreign automakers dial back their exposure to the world’s biggest auto market.

BYD has acquired the remaining 10 percent of shares it did not already own in a company set up to market the Denza premium electric vehicle brand, according to a statement on Sept. 16 that did not provide a value for the deal.

Representatives for Mercedes in China declined to comment.

The move ends a 13-year partnership and comes during a time of heightened trade tensions between China and Europe as the European Commission works to impose additional tariffs on Chinese EVs of up to 36.3 percent.

A vote by member states on the proposal is planned for next week.

Denza, incorporated as Shenzhen BYD New Energy, was established by BYD and Mercedes in 2011 with each holding a 50 percent interest.

The venture focused on premium EVs, but poor sales led to Mercedes, then known as Daimler, reducing its stake to 10 percent in 2021.

After a strategy reset the following year, Denza has found new popularity in its luxury people mover vans with its D9 minivan ranking as the best-seller in the category for 2023.

According to local media reports, Denza is set to launch its Z9GT model later this week with a pre-sale price that starts from 339,800 yuan ($47,900).