Denza, which was once born on the shoulders of a giant, has now fully fallen under the wing of BYD. Recently, Tianyancha revealed that Shenzhen Denza New Energy Automobile Co., Ltd. has undergone equity changes, with BYD Motor Industry Co., Ltd. repurchasing the 10% stake in Denza held by Mercedes-Benz (China) Investment Co., Ltd. In other words, Shenzhen Denza New Energy Automobile Co., Ltd. is now wholly owned by BYD Motor Industry Co., Ltd.  

   At the same time, Hans Georg Engel, the former director and senior executive vice president of Mercedes-Benz (China) Investment Co., Ltd., has also resigned from the Denza board of directors.

    As a result, Denza has transformed from a joint venture brand to a purely domestic brand.

    A BYD spokesperson said, "BYD's initiative to acquire equity reflects our firm confidence and continued investment in China's luxury new energy market. We have the capability to continuously support Denza with technology to meet the demand for luxury new energy vehicles among Chinese consumers. BYD and Mercedes-Benz maintain open communication and do not rule out future cooperation in other areas."

    An influential social media figure commented, "The German side's withdrawal from Denza's final stake is not an actual exit but rather a buyback by BYD. After years of joint venture operations, Chinese automakers have become stronger, reducing the need for foreign support in areas such as design, platforms, tuning, and safety."

    Over the past two years, BYD has launched new Denza products at a rapid pace, and the market has shown a strong upward trend. According to data, Denza sold a total of 127,800 vehicles in 2023. In the first eight months of this year, Denza sold 79,800 vehicles.

    In the past two years, Denza has successively launched the Denza D9, Denza N7, and Denza N8, with the Denza Z9 series set to debut soon. The all-new SUV Denza N9 will be officially unveiled next year.

    With frequent new product launches and significant sales growth, Denza has performed admirably under BYD's stewardship.

    However, some observers have pointed out that despite the backing of BYD, Denza faces numerous challenges in its future development.

    Currently, the Denza D9 is the brand's absolute sales leader. Data shows that Denza D9 sold 117,978 units in 2023, accounting for over 93% of Denza's total sales. In the first eight months of this year, Denza D9 sold 71,201 units, a year-on-year decrease of 8.8%.

    In August, although the Denza D9 topped the sales charts with 9,181 units, other domestic new energy models such as the Lantu Dreamer, Zeekr 009, and Trumpchi E8 are hot on its heels. Meanwhile, joint venture models like the Buick GL8, Sienna, and Gracia are catching up in sales.

    As for the Denza N7 and Denza N8 SUVs, their market performance has been somewhat lackluster. The N8 is gradually fading due to its lack of cost-effectiveness and unoriginal design, which is almost a direct copy of the BYD Tang. The N7, on the other hand, lacks competitiveness in the mid-range pure electric SUV segment due to the absence of a plug-in hybrid option.

    It is evident that Denza is struggling to maintain its market position.

    In terms of brand positioning, Denza's models are primarily priced in the range of 200,000 to 400,000 yuan, a highly competitive segment dominated by many luxury brands.

    In recent years, major automakers have actively deployed in the high-end market. Automakers like Lixiang and Wenjie have gained market share with their unique product features and differentiation strategies, while brands like Lantu, Avita, ZM-EV, and ARCFOX have struggled to make a mark in the premium segment.

    Judging from the market performance of the D9 and N7 pure electric versions, Denza also faces similar challenges.

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