In a major shift in the electric vehicle (EV) landscape of manufacturing in China, Mercedes-Benz Group has officially confirmed its complete exit from the Denza brand as the company confirmed that it sold its remaining 10% stake, marking the end of a partnership with BYD.

The journey of Denza started as an ambitious 50-50 partnership between BYD and Mercedes-Benz. With an initial registered capital of 7.76 billion yuan (around $1 billion), the joint venture aimed to produce low-cost EVs for the Chinese market. However, the partnership faced challenges from the outset.

Despite subsequent improvements, sales remained lackluster with only 23,000 units sold by the end of 2021, a decade after the brand’s inception.
Mercedes-Benz’s exit from Denza was a gradual process. In December 2021, as part of a strategy update, the company reduced its share from 50% to 10%. The final step came in July 2024 when Mercedes-Benz sold its remaining stake as now confirmed by the company.

Interestingly, BYD’s increased control of Denza has coincided with a significant turnaround for the brand. Since taking majority control in 2021, BYD has successfully repositioned Denza as a global high-end brand. Particularly, the introduction of the Denza D9 MPV in 2022 marked a turning point as it gained strong sales traction.

New models like the N7 crossover and N8 SUV followed in 2023, further boosting the brand’s popularity. As a result, total sales have now surpassed 200,000 units, a large increase from the 23,000 sold during the joint venture period.

Currently, Denza is set to launch the Z9 GT wagon and Z9 sedan, with the latter measuring an impressive 5.22 meters in length and featuring a triple-motor setup in its electric version. Plans are in place to expand the lineup to 10 models, and international expansion is underway, with deliveries set to start in Hong Kong and Europe soon.

Read More: BYD’s Denza Z9 GT Opens Pre-Sales With Prices Starting Around $47,000

As Denza moves forward under BYD’s sole leadership, the brand’s success has inversely correlated with Mercedes-Benz’s involvement. With Mercedes-Benz’s complete exit, the EV industry will be watching to see if Denza can fully capitalize on its potential in the evolving EV market.

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