The upcoming Beijing auto show will feature the debut of the first sedan from China’s electric vehicle manufacturer BYD’s premium brand, challenging established players like Germany’s Mercedes-Benz. Mercedes-Benz had stepped back from the brand’s development citing slow sales three years ago, reducing its stake to 10% from a previous 50-50 partnership with BYD founder Wang Chuanfu.
The Denza Z9GT, the result of Wang Chuanfu’s persistence with the brand, will join Denza’s lineup alongside the N7 and N8 SUVs and the D9 multipurpose vehicle. These models have been contributing to BYD’s dominance in the electric vehicle market, outperforming legacy foreign automakers.
“At one time, luxury brands were distinguished by their logos. Today, technology defines luxury for new energy brands,” stated Denza’s general manager Zhao Changjiang during an event on April 1. However, the luxury sedan will face challenges in a crowded domestic market amid a price war. Overseas, Chinese electric vehicles are viewed critically by governments, who attribute market saturation to Chinese overcapacity. Denza’s success is crucial for BYD’s ambition to become a global automotive powerhouse, competing with established leaders like Toyota and Volkswagen by offering a range of brands at various price points and shedding its reputation as a budget automaker. The move towards the luxury segment is also aimed at boosting profitability amidst margin pressures on mainstream models due to the ongoing price war.
