Author | Tian Hui
Editor | Qiu Kaijun
What will BYD do with DENZA after regaining control?
As expected, without being bound by Mercedes-Benz, BYD can fully utilize its hardcore technology in DENZA’s new products.
Unexpectedly, in terms of brand marketing, BYD boldly learns from the marketing strategies of luxury brands such as NIO, and has many innovations.
On the evening of May 16th, the DENZA brand held a press conference to announce three things: one was equity adjustment, the second was brand independence, and the third was pre-sale information for the new car D9.
Regarding equity, chairman of BYD Group Wang Chuanfu and Tang Shikai, a director of Daimler-Benz Group, have jointly confirmed DENZA’s equity adjustment. The shareholding ratio of BYD and Mercedes-Benz in DENZA will be adjusted from 5:5 to 9:1, and they will continue to hold DENZA’s shares jointly, but BYD will lead DENZA’s future development strategy.
In terms of branding, DENZA’s rebirth is the key point. DENZA’s future will be an independent brand with an independent team and independent product system. On top of this, DENZA has updated its LOGO and brand concept, and has begun to build an independent marketing network. It aims to walk a new retail model, insists on self-built stores, creates a user membership plan, and also launches the DENZA Life Store — which makes you think of NIO.
In terms of products, DENZA will launch five series of cars (D, E, N, Z, and A), and will release three models (MPV, midsize SUV, and midsize SUV) in 2022. BYD’s latest blade battery, super hybrid technology, intelligent cockpit, and intelligent driving technology will all fully support DENZA’s products.
The first car model, D9, is an MPV that competes directly with GL8. Its pre-sale starting price is 335,000 yuan for the plug-in version and 390,000 yuan for the pure electric version. There are also 99 founding editions for pre-sale priced at 660,000 yuan.
12 years ago, BYD and Daimler-Benz established DENZA, the first joint venture new energy vehicle brand. Today, 12 years after its establishment, after its equity adjustment, BYD has begun to lead DENZA’s development strategy.
In this press conference, we can see the DENZA brand being re-created with a new concept, a new dealer network being re-structured with a new team, and the efforts to bring users closer together with new products.
But the key to DENZA’s rebirth is how to find new momentum.
Mercedes gives up to achieve the new DENZA
BYD has long wanted to take back DENZA.
The DENZA dealer network once managed by Mercedes, within the Mercedes system, was like a relative visiting home. Everyone was very polite to DENZA, but no one liked it.
Whenever there is a car exhibition, the core showroom will have display cars. Although DENZA seems to have a similar treatment to Smart and Fujian Benz within the Mercedes-Benz dealership system, in fact, DENZA has never been given much attention. Therefore, since the birth of the brand, the products and sales of DENZA have never been prosperous.
“Grandma doesn’t love you, uncle doesn’t care,” this is how awkward DENZA is under the dominance of Mercedes-Benz.
Therefore, breaking the 50:50 equity ratio limit and letting DENZA belong to BYD is a good way to let DENZA be reborn. The specific details of the negotiations between the two sides are unknown to the public, but the Germans paid a lot of money to change the equity ratio, first jointly injecting 1 billion RMB each into DENZA with BYD, and then adjusting the equity ratio to BYD holding 90%, and Mercedes-Benz holding 10%.
Taking advantage of the DENZA press conference, Wang Chuanfu and Tang Shikai jointly confirmed this fact, which was a guarantee for the future of DENZA for both parties, and also a clear dividing point for old DENZA and new DENZA.
The future of DENZA is destined to blend in more “Di flavor”.
After BYD topped the monthly sales of passenger cars, “Di flavor” has become the new momentum for DENZA’s development.
New DENZA is independent, but also supported by a big tree
New DENZA will be an independent brand with its own team, independent product system and design language.
In terms of branding, DENZA has its clear and independent positioning: a smart and safe new luxury car brand. Around this positioning, DENZA has updated its logo and started to establish a new brand mission, creating a new luxury and all-in-one travel experience for users.
At the same time, Zhao Changjiang, the general manager of DENZA Automobile Sales Co., Ltd. clarified at the press conference that DENZA will have its own independent dealership system, and will launch new retail business.
The DENZA plan is to establish an online and offline channel model to provide perfect and high-quality services and after-sales guarantee for DENZA car owners.In the online space, DENZA will adopt a fully digitalized car buying service system, enabling visualized order system and transparent pricing from ordering to delivery, and providing various modes such as DENZA experience stores, DENZA centers, and DENZA MINI centers to bring closer proximity to customers, improving conversions and transactions.
For DENZA’s online operation and car owner interactions, they are working hard to learn from new energy vehicle companies.
DENZA plans to launch the “DENZA Star Plan” online to provide users with rich membership benefits while offering high-end, quality, sustainable sophisticated designs and lifestyles through the DENZA Life Mall. In the offline space, DENZA will build colorful user communities like car clubs and city vitality parties.
In terms of marketing models, Zhao Changjiang, the general manager of DENZA’s sales division, announced at a press conference that DENZA will create a self-operating sales model. By 2022, DENZA will complete the layout of 200 offline stores, covering 68 cities across the country.
Regarding products, DENZA will use an independent product line and design language, launching three car models in 2022, namely MPV, mid-size SUV, and mid-large SUV.
New DENZA is an independent company but also understands the benefits of standing on the shoulders of giants. After all, the giant behind New DENZA is the “king” of China’s new energy vehicle market, BYD, which can be trusted.
For example, in terms of technology behind the products, New DENZA will use a “borrowing” approach, directly adopting BYD’s best available technology.
BYD’s pride and joy, DM-i super hybrid technology and e-platform 3.0 pure electric technology, will be applied to the cars New DENZA launches. On the intelligent side, BYD’s automotive technology research institute developed the DENZA Link intelligent network connecting system and the DENZA Pilot advanced intelligent auxiliary driving system specifically for DENZA, supporting advanced driving functions such as light turning and lane changing.
Not only in the technical field, but New DENZA will also rely on BYD in other aspects. For example, in terms of customer service, DENZA will rely on BYD’s nationwide service capabilities, striving to extend more services and bring customers closer experiences. In the future, DENZA will satisfy more user needs with a fuller range of services.
The first model from DENZA, the D9, will compete with the GL8.
DENZA D9 is a mid-large-sized high-end new energy MPV car with plug-in hybrid and pure electric versions, pre-selling at RMB 335,000 and RMB 390,000 respectively.The new car adopts the brand-new design language π-Motion from T-Prime. The overall dimensions of the vehicle are 5250/1960/1920mm in length, width, and height respectively, with a wheelbase of 3110mm, which not only ensures the space for the occupants, but also takes into account the convenience of getting in and out of the vehicle.
In terms of power, the plug-in hybrid version of T-Premium D9 is based on the DM-i super hybrid technology, which is divided into two-wheel drive and four-wheel drive models, with a maximum comprehensive range of up to 1040km and a pure electric range of 190km. The fuel consumption in low battery states is as low as 5.9L/100km.
The pure electric version of the T-Premium D9, which is built with e-platform 3.0 technology, equipped with an eight-in-one electric powertrain, a wide-temperature-range heat pump system, the BYD flagship technology blade battery, etc., and the maximum range of CLTC can reach over 600km, it only takes 10 minutes to charge for a 150km range, 30%-80% charged in 30 minutes, which would effectively solve the problem of mileage anxiety for users and provide a safer and more worry-free electric travel experience.
In terms of product design, T-Premium D9 will be equipped with the T-Link intelligent network system that supports 5G communication. The vehicle is equipped with LCD screens in the driver’s seat and central console, and two independent entertainment screens are also provided for the rear passengers.
All versions of T-Premium D9 come standard with the second-row aircraft seats, and the second-row passengers are provided with independent seat control screens. It is worth mentioning that the second-row aircraft seat of T-Premium D9 is configured with an electric slide rail of 1080mm, and the second-row passengers can adjust the front and rear positions of the seat electrically. This function is not a standard configuration even in more expensive Mercedes-Benz V-Class vehicles and other models.
In terms of assisted driving functions, T-Premium D9 will be equipped with T-Pilot advanced driving assistance system, and there are 24 sensors deployed in the vehicle to support LCC lane centering and HWA high-speed acceleration assistance functions.
Why is the first model of the new T-Premium series an MPV? Zhao Changjiang gave the answer in a third-party livestream after the press conference.He said that the first reason for making the New Tang MPV was that there had been no breakthrough in the MPV market for many years; the second was that there were no MPVs in the new energy market; and the third was that demand for middle and high-end MPVs was increasing.
According to Zhao Changjiang, the plug-in hybrid version of the Tang D9 is expected to be delivered in July, and the pure electric version will be delivered by the end of the year.
Regarding the products, the New Tang plans to launch three models within 2022, including the Tang D9, a medium-sized SUV, and a medium-to-large 6/7-seat SUV.
New Tang Needs Less “Di Flavor”
With full “Di flavor,” the New Tang has undergone rebirth.
Especially in the context of the hot sales of DM-i plug-in hybrid vehicles, e-platform 3.0 pure electric vehicles, and the equity adjustment of Tang, which is now under the leadership of BYD, the New Tang has more “Di flavor” than before.
But since the New Tang has become independent, it should have its own technology direction, product features, and independent customer base.
The New Tang needs to rely on the technology provided by BYD, which is understandable, but if it cannot depart from the BYD technology system, it cannot break away from the existing customer base of BYD, and ultimately it is difficult to form its own brand value.
It is true that it is good to take advantage of the shade of a big tree, but given the plight of the old Tang, which is entrusted to others, now the New Tang relies on BYD’s shade, and customers see BYD, not the New Tang.
Using a new retail model, customer operations like new energy vehicle startups ultimately do not solve the fundamental problem. If it cannot depart from BYD’s technology, it cannot get rid of the “Di flavor” on its body.
The New Tang ultimately needs to do something differently from BYD, reduce some of the “Di flavor,” and become a brand recognized by the masses.
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.