Early period (2010–2021)
On 1 March 2010, BYD Auto and Daimler AG signed a memorandum of understanding for the joint development of electric vehicles.[11] The initial link-up led to the creation of a new, equal-ownership legal entity, Shenzhen BYD Daimler New Technology Co., Ltd. The company was formally established on 27 May 2010[12][13] and received a business license from the Chinese government in March 2011.[14]
The brand name Denza was introduced in March 2012. During its introduction, BYD chairman and founder Wang Chuanfu highlighted that BYD contributes its expertise in battery technology, electric drive systems, and practical experience in deploying electric vehicles on Chinese roads, while Daimler complements this with its experience in designing premium automobiles, know-how of electric vehicle architecture and safety, and a legacy of over 125 years in the industry.[15]
Denza showcased its first concept car in April 2012 at the Auto China motor show in Beijing.[16] It was expected that this product would be offered as an electric luxury car.[17]
By September 2014, BYD and Daimler had jointly invested more than €300 million into the joint venture.[15] The brand's initial product was set to be launched in Beijing, Shanghai, and Shenzhen in September 2014,[18] the launch date was then pushed back to late 2014.[19] Its first model, the Denza EV debuted in December 2014.[2]
When Denza launched its first car, sales of new energy vehicles depend on subsidies provided by the Chinese government. Purchasers of the car were qualified for a RMB 78,000 subsidy and while the total subsidy on offer depends on location of purchase, no more than RMB 120,000 can be deducted.[2][18] As of 2014, buyers were exempted from Beijing's license plate lottery and qualified for free plates in Shanghai and Shenzhen.[18]
In 2018, the Denza EV underwent extensive body restyling, changing its name to Denza 500.[20] In November 2019, Denza presented its second model based on the second-generation BYD Tang. The vehicle was designed with significant participation of Mercedes-Benz designers, which handled exterior and interior design.[21][22] Sales of the Denza X started at the end of 2020 exclusively on the Chinese market.[23]
Restructuring (2021–present)
In February 2021, the German business daily Handelsblatt reported that the relations between Denza's co-owners were in crisis, as its sales did not meet the expectations of Daimler, which allegedly expressed a desire to end the venture. However, this information was denied.[24] Changes in the joint venture structure was announced in December 2021. The unpopular Denza X SUV was discontinued, and the alliance changed its name to Shenzhen Denza New Energy Vehicle Co., Ltd. In turn, Mercedes-Benz Group reduced its shares from 50% to 10% in favor of BYD's higher stake of 90%.[25]
The first model since the restructuring, the Denza D9 minivan was introduced in August 2022. The D9 is available in plug-in hybrid and battery electric variant.[26] At the same time, the company announced the expansion of its dealer network in China with a plan to open 270 new points by the end of 2022 throughout the country.
