BEIJING, December 24 (TMTPOST) —Multinational automaker Daimler AG and Chinese carmaker BYD announced on Friday that they have reached an agreement on a stake change in their joint venture DENZA New Energy Automotive.
Daimler AG’s equity interest in the joint venture will be reduced to 10% while BYD will hold the remaining 90% after the transfer, according to the agreement. The deal is expected to be completed in mid-2022 as it is still still subject to approval by relevant regulators in China.
Image Source: DENZA
DENZA New Energy will launch new car models in 2022 in China and seek more business opportunities in the market, according to BYD. DENZA’s brand operation team will ensure that existing customers continue to enjoy relevant customer services.
BYD and Daimler jointly established the joint venture in 2010, with each company holding 50% stake in the new company. The joint venture is the first joint venture in China to focus on new energy vehicles. However, the company’s products have not been able to achieve satisfactory results in the market even after several round of further investments made by BYD and Daimler.
DENZA’s production between January and April this year was 1,517 units, 1,442 of which are DENZA X PHEV, according to statistics from the China Passenger Car Association (CPCA). DENZA targets the mid-high end new energy vehicle segment in China.
By the end of November 30, 2021, DENZA had a total of 2.11 billion yuan worth of assets. The revenue from January to November this year was 1.15 billion yuan. The company suffered a net loss of 150 million yuan.
Headquartered in Shenzhen, DENZA specializes in luxury electric cars and has built a solid reputation among customers in China with reliable, high-quality products. BYD intends to compete with NIO and Tesla in premium electric car models through DENZA.
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