Mercedes-Benz has officially sold off its last 10% stake in BYD’s Denza brand
After more than a decade of collaboration, Mercedes-Benz has officially ended its partnership with BYD by selling its final 10 percent stake in the Denza brand. This significant move marks the conclusion of a 13-year joint venture in China’s burgeoning electric vehicle (EV) market, with BYD now holding complete control over the Denza brand.
BYD’s acquisition of the remaining shares brings the Shenzhen Denza New Energy Automobile Co., Ltd entirely under its ownership. The financial terms of the deal were not disclosed, and representatives from Mercedes-Benz in China opted not to comment on the transaction.
Moreover, with an impressive annual sales figure of around 3 million vehicles, BYD has firmly established itself as the world’s leading EV manufacturer. The partnership, initially launched as a 50-50 joint venture in 2010, sought to leverage the strengths of both companies to create a line of premium EVs.
However, the venture faced challenges, including disappointing sales figures that ultimately led Mercedes to reduce its stake to just 10 percent in 2021. The recent move to divest completely reflects a strategic shift as BYD aims to strengthen its foothold in the rapidly evolving EV landscape. The dissolution of this joint venture occurs amid rising trade tensions between China and Europe.
On top of that, the European Commission is currently preparing to impose new tariffs on Chinese-made EVs, potentially reaching as high as 36.3 percent. A vote on this proposal by European Union member states is expected next week, signalling a tense atmosphere for foreign automakers operating in China.
Denza, originally founded in 2011, was envisioned as a joint venture dedicated to producing high-quality EVs. However, as the market dynamics shifted, foreign companies faced increasing challenges in maintaining their market presence in China. The transition to full ownership by BYD underscores the brand’s commitment to consolidating its position as a leader in the EV market.
This shift also reflects a broader trend, where foreign automakers are reevaluating their strategies in China in light of a complex trade environment and changing consumer preferences. As BYD moves forward with its plans, it will likely focus on expanding Denza’s product offerings and enhancing brand recognition.
The end of this joint venture not only marks the conclusion of a significant partnership but also signals a new chapter for BYD as it navigates the challenges and opportunities that lie ahead in the global EV market.
