BYD, Mercedes-Benz invest in Denza with capital of of nearly 5 billion RMB

According to public information recently, Shenzhen Denza Energy Automobile Co., Ltd. increased its registered capital on January 14 from 5.06 billion to 5.76 billion, an increase of 13.83 percent, and the total investment increased from 6.56 billion yuan to 7.26 billion yuan. According to Tian’an data, Shenzhen Denza Energy Automobile Co., Ltd. was established in February 2011, the parent company is BYD and Daimler Greater China Investment Co., Ltd., the two companies have a 50% stake.

As the first domestic enterprises to enter the field of new energy, Denza’s first model, the Denza300, was launched in 2014, and although the product has been upgraded since then, no other new products have been introduced. This led to the momentum of early, but failed to enter the mainstream camp of new energy vehicle companies. Coupled with the high visibility, Teng-e car sales have been tepid.

Poor sales directly affected Denza’s revenue, public data show that 2014-2018 Denza has lost more than 3.5 billion yuan, an average annual loss of up to 700 million yuan.

But Daimler and BYD have not given up on Denza, and in recent years have been “blood transfusions” to them. Taking into account the capital increase, Daimler and BYD have added about 4.9 billion yuan to Denza.”

Suffering from pain, Denza started in June 2019 and made a series of adjustments.

At the 2019 Guangzhou Motor Show, Denza Automotive launched its second production model, the Denza X, and launched pre-order delivery. The new car is positioned as a medium-sized pure electric SUV, offering both pure-electric version and plug-in hybrid models, with a price range of 289800-357800 yuan. Among them, the pure electric model NEDC has a range of 520 km.

In addition, from July 1, 2019, Beijing Mercedes-Benz Sales Services Co., Ltd. is officially responsible for the operation of some of Denza’s business, including sales, marketing and brand communication, customer service, network development and so on.

Now Denza has been “blood transfusion” between the two sides, and has a new product and brand-new sales channels, as to whether Teng-e can “take off”, let us wait and see.

Denza X