Daimler and its long-term Chinese partner BYD signed an equity transfer agreement on the future setup of the DENZA joint venture
Daimler Greater China Ltd. (Daimler) and its long-term Chinese partner BYD Auto Industry Co., Ltd. (BYD) signed an equity transfer agreement to realign the structural setup of their joint venture Shenzhen DENZA New Energy Automotive Co., Ltd. (DENZA). Both partners intend to complete an equity transfer in DENZA. Following the equity transfer, Daimler will hold an equity interest of 10% and BYD will hold 90% equity interest. The equity transfer is subject to regulatory approvals and is planned for mid of 2022. As a pioneer of new energy vehicles (NEVs), DENZA made robust progress thanks to joint efforts from both shareholders. The strong support in operations by BYD will facilitate the future success of DENZA, while Daimler stays committed as a shareholder. Both Daimler and BYD remain dedicated to their successful long-term partnership.
Daimler and BYD aim to accelerate the development of DENZA in China’s fast-growing NEV market. In 2022, DENZA will introduce new models to the Chinese market and seek further growth opportunities. The DENZA operation team will ensure that existing customers continue to enjoy relevant customer services.
Daimler and BYD have been long-term partners in the Chinese market. In 2010, both companies signed the contract for the 50:50 research and technology joint venture BYD Daimler New Technology Co., Ltd. (BDNT) with the goal to develop and produce NEVs in and for China. The vehicle was marketed under the new DENZA brand owned by BDNT. It was the first joint venture from an international carmaker and a local carmaker focused purely on NEVs.
Since the market launch of the first vehicle, the DENZA brand has built a solid reputation among customers in China with reliable, high-quality products. Through the development of the DENZA brand, both Daimler and BYD gained valuable experience and customer insights in the China’s high-end NEV market, the largest and the most dynamic in the world.
In 2019, Daimler was among the first auto companies to announce a comprehensive carbon neutrality plan that covers all stages of the automotive value chain. In July 2021, Daimler announced it plans to go “all electric” by the end of this decade, where market conditions allow. China plays a crucial role in accelerating this electrification strategy. In 2021, the company already offers four all-electric Mercedes-EQ models in China, three of which are locally produced. Together with its local partners including BYD, Daimler is confident in the growth potential of the NEV market in China.
As one of the world’s leading new energy vehicle manufacturers, BYD announced the “7+4” Full Market EV Strategy, which helps to electrify the entire public transportation system. BYD’s new energy vehicles have been sold in more than 300 cities in over 50 countries and regions across 6 continents. BYD continues to push the boundaries of the EV industry with core technologies including the Blade Battery, DM-i super hybrid technology, and the e-Platform 3.0. Adhering to values of openness and sharing, BYD will cooperate with Daimler and other world leading partners to transform energy consumption in mobility and transportation sector, aiming to “Cool the Earth by 1°C”.
SOURCE: Daimler
Keyword: Daimler and BYD agree on future setup of DENZA joint venture