China: Daimler-BYD's EV Joint Venture Needs Success To Survive
Denza needs to improve sales or risk that Daimler and BYD will pull the plug.
After about 10 years since the establishment of Daimler-BYD’s joint venture – Shenzhen BYD Daimler New Technology Co. in 2010 – the new luxury EV brand Denza hasn’t made any significant splash in China.
The sales of the first model were relatively low, thousands a year at best, and now, the future of the entire project depends on the latest Denza X crossover/SUV.
According to the latest report from Bloomberg, Daimler CEO Ola Kallenius expects results: “The cash investment is behind us. Now we look how Denza develops and then we’ll make decisions.”
The new Denza X, shown first as a concept in 2019, is not a bad-looking car. It has a range of 520 km (323 miles) NEDC and offers acceleration 0-100 km/h in 4.6 seconds.
It’s quite interesting that Denza was not able to succeed so far as the Chinese New Energy Market expanded so much over the years.
Time will tell whether the marriage of Mercedes design and BYD EV tech will finally be fruitful.
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