China's Denza to Add New Models in Global Expansion

Denza, the Chinese brand operated jointly by BYD and Mercedes-Benz, reaffirms its global expansion plans with the confirmation of five more new production models at the unveiling of its T8 SUV.

Established in 2010, the Shenzhen, China-based company plans to launch a new flagship SUV – the T9, together with two sedan models and a coupe – all of which are planned to receive a choice of either all-electric or plug-in hybrid-electric drivetrains, Denza officials say.

The new Denza models are to be priced from RMB300,000 ($41,400) to RMB800,000 ($110,300) in China, indicating they will be positioned higher than majority-shareholder BYD’s domestic market models but lower than those of recently launched sister brand Yangwang, which is aiming at the upper luxury market.

The Denza N7 is aimed squarely at the premium midsize crossover segment whose competition includes the Tesla Model Y and the Nio ES6.

Demonstrating the company's aspirations, Denza says the largest of its sedan models will be an “executive car in the mold of the Mercedes-Benz S-Class” with the coupe to feature a “layout similar to the Porsche Panamera.”

The fifth new Denza model (pictured, below) is to be based on the T8 SUV, essentially an updated version of the earlier Denza X developed jointly by BYD and Mercedes-Benz and launched in 2019, say Denza officials.

Denza N8

Confirmation of Denza's new model plans comes after the recent unveiling of the Denza D9 MPV and N7 SUV models – both of which draw heavily on parent company BYD’s EV platform, powertrain and automated driving technology.

An investment figure for the new model push has not been revealed.

Following disappointing sales and a dearth of new model development throughout its existence, Denza was heavily restructured in 2021 with BYD moving to take a majority 90% ownership and Mercedes-Benz reducing its stake to 10%.Previously, the two companies had operated Denza as a 50:50 joint venture.

The D9, the sole Denza model currently on sale in China, recorded 11,058 sales in June, with the Chinese automaker claiming an average price for the executive-class MPV of RMB420,000 ($60,000).

BYD has aggressive expansion plans in both China and Europe. The company sells electric buses and commercial equipment in the U.S., and has made noises about launching personal vehicles in the U.S. for the past 15 years, but without actually moving to the big stage. At one time, Warren Buffett was a major investor in BYD but the Berkshire Hathaway chairman has sold off his stake, saying he did not want to invest in a company that competed against Tesla CEO Elon Musk.