Mercedes-Benz has sold its remaining 10% stake in its electric vehicle (EV) joint venture with BYD, ending a 13-year partnership. This move grants BYD full control of the Denza brand, which focuses on luxury EVs in China. New Delhi: Mercedes-Benz officially exits the electric vehicle (EV) joint venture with Chinese automaker BYD, ending a 13-year partnership.
The German luxury carmaker has sold its remaining 10% stake in the joint venture, handing full control of the Denza brand to BYD. The sale comes after Mercedes-Benz reduced its stake in the venture back in 2021, reflecting ongoing challenges in the luxury EV market in China. While the financial details of the deal have not been disclosed, this move signals a shift in strategy for both automakers.
Denza, the brand formed under the joint venture, was established in 2011 as Shenzhen BYD New Energy Co., with both Mercedes-Benz and BYD initially holding equal stakes. The venture aimed to manufacture high-end electric vehicles tailored for the Chinese market.
However, disappointing sales figures over the years prompted Mercedes-Benz to reduce its involvement, ultimately leading to its complete exit. Despite the German automaker’s withdrawal, Mercedes-Benz has clarified that its technology has not been integrated into current Denza models. BYD, now the sole owner of Denza, is moving ahead with the launch of its Z9GT model, set to debut for $47,900.
The company has seen moderate success with the D9 minivan, which became the bestseller in its category in China in 2023. BYD’s full control of the brand offers the company an opportunity to strengthen its position in the luxury EV segment within its domestic market. Mercedes-Benz’s decision to pull out of the joint venture comes at a challenging time for global automakers, especially those operating in China.
Increasing tariffs on Chinese-made electric vehicles are causing friction between China and major markets like Europe and North America. The European Union has proposed a 36.3% tariff on Chinese EVs, while Canada has imposed a 100% import duty on the vehicles.
These trade barriers are adding pressure on automakers as they navigate a complex international landscape. Click for more latest Auto news. Also get top headlines and latest news from India and around the world at News9.
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