Mercedes-Benz has officially ended its 13-year partnership with Chinese automaker BYD, marking the close of an era in their joint venture, Denza.
Rebrand to Premium Competitor
The collaboration, which began in 2011, was initially created to produce affordable vehicles for the Chinese market. However, over the past decade, BYD has evolved into a major global player in the electric vehicle (EV) industry, according to Motor.
As BYD grows its influence, especially in Europe, Mercedes has opted to step away from the alliance.
Denza was the product of Mercedes' and BYD's partnership, originally focusing on low-cost cars for China. However, BYD has rebranded Denza into a premium competitor, positioning itself to challenge the likes of Mercedes in both China and Europe.
Reduced Stake Over the Years
The brand's first model to enter the European market, the Denza D9, is a direct rival to Mercedes' V-Class and EQV models. The D9 is available in both plug-in hybrid (PHEV) and fully electric (EV) versions, reflecting BYD's strategy of targeting the premium EV market.
Mercedes' decision to pull out of the partnership wasn't sudden. Over the years, the German automaker had reduced its stake in Denza from 50% to just 10%.
However, many industry experts question the timing of the exit, as BYD's presence in the EV market is rapidly growing, and the brand is poised to take advantage of global demand for electric and hybrid vehicles.
BYD has already announced further plans to introduce the Denza Z9, a luxury sedan that will compete with Mercedes' flagship S-Class and EQS models.
