Automaker Daimler Withdraws and Sells Stake in Denza, Its ‘Chinese Mercedes-Benz of Electric Cars,’ to Giant BYD, Giving Chinese More Power Than Germans

After Daimler and the Giant BYD Signed an Alliance with the Intent to Enter the Chinese Market, Automaker Withdraws and Sells Part of Denza, Its ‘Chinese Mercedes-Benz’, and Chinese Companies Consolidate in the Premium Electric Car Market

The giant electric car manufacturers are signing agreements all over the world. Daimler, the parent company of Mercedes Benz, relies on third-party manufacturers to improve entry into different markets. Business partners help alleviate high production costs. Daimler and the giant BYD signed an alliance some time ago with the intent to enter the Chinese market under the Denza brand. Today, the terms have been modified so that the Chinese have more power than the Germans.

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It’s not that Mercedes, or rather, Daimler, is giving up on the Chinese market. Its plans in the Far East are on a good trajectory and for a long time, it managed to position itself as one of the best-rated and best-selling premium brands. However, in 2010, it signed a collaboration with its partner BYD to improve the introduction of electric mobility. Thus, they founded the company Denza.

Originally, the company was constituted by a 50% collaboration from each brand. The plans have always been the same: to produce quality electric vehicles with premium recognition. Currently, they offer a single model, the Denza X, an SUV that can feature 100% electric or plug-in hybrid mechanics. Its impact on the markets was less than expected, and as Mercedes is doing so well with its exploration of the Chinese market, it considered this the right time to reduce its stake in the company.

Daimler Sells 40% of Denza and Chinese Companies Consolidate in the Premium Electric Car Market

Daimler announced it is selling 40% of its business stake to BYD. In fact, the terms of the agreement conclude that a transfer is made. In this way, BYD will have 90% of the company, while the Germans will retain 10%. Obviously, this gives much more weight to the Chinese, who will be responsible for bearing the weight of the entire company. An interesting move, as it allows BYD to enter the premium market with a consolidated brand.

The goal is to continue growing, and for that, Denza will bring more models to the market. The year 2022 is particularly motivated by this strategy. At the moment, it is unknown which models will be presented, but what is known is that they will be highly electrified and of high quality. The company’s reach doesn’t stop there, as it also aims to become a provider of electricity services and solutions.

In the coming years, the pace of presentations will increase. Denza has a solid foundation to rely on, although it could be explored much more efficiently. As one of the pioneers of next-generation mobility, it has seen in recent years how new manufacturers have passed it by. Today, it is no longer alone in the market, and significant rivals are ahead and will not make things easy for it.