Can Tengshi reshape the luxury new energy vehicle market after lying dormant for 12 years?

Author | Wang Yunpeng

After a 12-year hibernation, the DENZA is accelerating its return to the mainstream racetrack.

On May 16th, the DENZA held the “Hello, New World” brand and D9 presale launch event. From the content perspective, the entire launch event mainly discussed three things: equity adjustment, DENZA brand independence, and the presale of the new D9 model (the plug-in version starting at 335,000 yuan, and the full electric version starting at 390,000 yuan).

Let’s first take a look at the new D9 model that has started presale. As a brand-new MPV model of DENZA, the D9 includes 4 pure electric versions and 2 hybrid versions, presold at prices ranging from 3,350,000 yuan to 4,600,000 yuan. At the same time, the new car also released a founding version with a presale price of 660,000 yuan, with a total of 99 units. In terms of power, the D9 will provide a dual electric motor and DM-i hybrid system. Among them, the plug-in hybrid version will use BYD’s latest DM-i hybrid technology, and the comprehensive range can reach 1040km.

As a brand and new car launch event, in addition to the presale of the D9, the DENZA brand also released a new visual image, brand system organization, core value extension, and product matrix planning, fully demonstrating a new era and a new starting point, facing opportunities and challenges, embracing the wisdom of the future determination and attitude.

In other words, this release marks that the DENZA brand will officially enter a new stage of development.

At the same time, the DENZA also revealed at the launch event that it will undertake and continue to provide higher-end models for BYD’s Dynasty and Ocean series in the future. Mercedes-Benz will also provide further assistance and support. Three new cars will be launched within a year, multiple new energy luxury models will be launched within three years, and five major series of products will be launched in the future, covering MPV, SUV, sedan, and urban sports cars.

“We believe that DENZA, which has entered a new stage of development, will create new remarkable achievements with the joint support of BYD and Mercedes-Benz, and stand firmly in the world’s new energy vehicle market.” Wang Chuanfu, Chairman and President of BYD Co., Ltd. said.

The 12-year “low-key” return

Although it has been in hibernation, it cannot hide the fact that DENZA was born with a “golden spoon.”

Let’s go back 12 years.In 2010, Wang Chuanfu, the founder, chairman and CEO of BYD Group, led his team to Germany to sign a memorandum of understanding with Daimler. One year later, BYD and Daimler established Shenzhen BYD Daimler New Technology Co., Ltd. with a 50:50 equity ratio.

In 2012, DENZA, the first domestic new energy vehicle brand targeting the mid-to-high-end market, was born. According to the agreement between BYD and Daimler, BYD was responsible for providing the power battery, motor and control technology, while Daimler was responsible for the complete vehicle production and manufacturing.

In 2014 and 2016, DENZA launched its first model, the DENZA 300, and changed its company name to Shenzhen Denza New Energy Automotive Co., Ltd. (i.e., Denza Automotive), respectively. It is understood that the DENZA 300, the first mass-produced model, was developed based on the Mercedes-Benz B200 platform.

Since then, DENZA not only launched upgraded models like the DENZA 400 and DENZA 500, but also integrated into Mercedes-Benz’s sales system in July 2019. In November of the same year, DENZA launched the new DENZA X (electric/hybrid version) with a new logo.

As the first domestic new energy vehicle joint venture brand, DENZA once attracted a lot of attention in the industry due to the strong background of its two shareholders. Wang Chuanfu also once said, “As the child of Daimler and BYD, DENZA is a brand born on the shoulders of giants.”

Despite the high expectations, DENZA, which was born with a “golden spoon” and was the first to enter the high-end new energy market, did not perform well. According to data, from 2014 to 2021, DENZA’s cumulative sales were less than 30,000, and in 2021, only 4,708 vehicles were sold.

It is worth mentioning that BYD did not give up on the DENZA brand despite its continued poor performance in the market. On December 25, 2021, BYD announced that it plans to increase its capital in DENZA by RMB 1 billion, as well as Daimler. At the same time, the two sides also signed an agreement on the transfer of DENZA’s equity, which stated that after the transfer, BYD’s shareholding ratio in DENZA will be increased from 50% to 90%, and Daimler’s shareholding ratio will be reduced from 50% to 10%. The transfer is planned to be completed in the middle of 2022.After more than a month since the signing of the bilateral agreement on February 14 this year, BYD (Build Your Dreams) established DENZA Automobile Sales and Service Co., Ltd., according to public records. The company is a wholly-owned subsidiary of BYD Auto Industry Co., Ltd., with a registered capital of RMB 50 million and is engaged in new car sales, sales of new energy vehicles, sales of electric accessories and other related services.

Before the launch event of the brand and the D9 pre-sale on May 16, the frequent news about equity changes and new car models of DENZA led to speculation that after twelve years of dormancy, DENZA would return to the mainstream market and enter the high-end new energy vehicle market with high-end MPV models.

Under the halo, power and ambition cannot be ignored. By relying solely on a privileged background, DENZA, which has been “depressed” for 12 years, cannot continue to impact the high-end new energy market. BYD and the DENZA brand have a clear understanding of this. At the brand and D9 pre-sale release event, DENZA announced a completely new brand visual identity and brand value system. DENZA will focus on products and build a new user ecosystem centered on users.

On the one hand, DENZA will establish an online and offline channel model to provide perfect and high-quality services and after-sales guarantees for DENZA owners. Additionally, DENZA will launch the “DENZA Star Yu Plan” online to provide users with rich membership benefits. DENZA will also offer high-end, quality and sustainable designs and lifestyles to users through the DENZA Life store. More specifically, DENZA will adopt a fully digitalized car purchase service system, providing visible ordering and delivery, transparent pricing, and traceability. In terms of offline services, DENZA will provide vehicle experience stores, DENZA centers, DENZA MINI centers, car clubs, and city vitality parties for its users.

“This year, DENZA will complete the layout of 200 offline stores, covering 68 cities across the country. We will rely on the service capabilities of BYD Group to strive for better and closer services. In the future, DENZA will satisfy more user needs with more comprehensive services,” said Zhao Changjiang, General Manager of DENZA Sales Division.

In addition to the analysis of brand and core values, DENZA also has a rather clear plan for future product layouts. According to DENZA’s plan, it will launch five series of multiple products in the future, including MPVs, SUVs, sedans, city sports cars, and luxury and exquisite vehicles to meet the diverse needs of new era users.It is worth noting that in the fiercely competitive high-end new energy market, can DENZA’s “high-profile” return support its ambition?

The answer to this question may be found in the D9 that is now on pre-sale. According to DENZA, the D9 is a medium to large-sized high-end new energy MPV that combines luxury, intelligence, power, and safety. The size of the vehicle is 5250/1960/1920mm respectively for length, width, and height, and the wheelbase is 3110mm. While ensuring passenger space, it also takes into account the convenience of passenger entry and exit.

In terms of power, DENZA D9 is equipped with the DM-i super-hybrid technology and the e-platform 3.0 technology. The DM-i super-hybrid version has a comprehensive range of 1040km, with a maximum pure electric range of 190km. The power consumption per 100km is as low as 5.9L, and it is equipped with an 80kW DC fast charger, which takes only 25 minutes to charge from 30% to 80%.

The EV version power system is based on the e-platform 3.0 and is equipped with an eight-in-one electric power assembly, a wide-temperature range heat pump system, and BYD’s star technology blade battery, etc. The CLTC’s longest range is over 600km, it only takes 10 minutes to charge and extend the range by 150km, and it takes 30 minutes to charge from 30% to 80%.

In terms of the most important intelligent level for the current market and users, DENZA has equipped the D9 with the “DENZA Link” ultra-intelligent interactive cockpit, which can achieve 5G communication. It is reported that the cockpit has a globally first installed seven-screen interconnected design, with a black-gold and flat UI design and a full-scene intelligent voice system, and it supports continuous dialogue in four areas.

At the same time, DENZA D9 is also equipped with the new DENZA Pilot advanced intelligent driving assistance system, which supports L2+ intelligent driving assistance functions. It has leading computational power in the industry and a full-sensing system with 24 sensors, enabling safer and more intelligent driving.

“We use technological innovation to build the foundation of the brand and help DENZA’s brand vigorously develop,” said Lian Yubo, Executive Vice President of BYD Group and Dean of the Automotive Engineering Research Institute. “BYD will comprehensively shape DENZA’s new luxury product matrix from vehicle design, performance tuning, and internal and external details. The DENZA product line will enjoy the empowerment of BYD’s ‘technology talent pool’ including the e-platform 3.0, DM-i super hybrid technology, ‘sandwich’ structure blade battery, etc.”

# Translated English Markdown text with HTML tags

Interpreting the expression of Lian Yubo, BYD will inject the best new energy power and intelligent technology into DENZA, interpreting the new definition of leading luxury with advanced technology.

Rising with DENZA, creating the extraordinary. In a new stage of development, we believe DENZA can fully unleash the surging brand momentum, establish an all-round benchmark for the market with new luxury experience, leading technology, excellent products, warm and caring services, and create a superior life for users.

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.