BYD and Merc Owned Shenzhen Denza Announced New Electric SUV to Rival Luxury Brands
Shenzhen Denza, the joint venture between BYD and Mercedes-Benz, introduces its N7 electric SUV to rival premium models in the Chinese market.
Shenzhen Denza New Energy Automotive, the electric-vehicle (EV) collaboration between BYD and Mercedes-Benz, has unveiled its mid-sized sport-utility vehicle (SUV) in China to challenge luxury models produced by renowned brands like BMW and Audi. Denza revealed on Monday that their second production model, the N7, will have a starting price of 301,800 yuan (US$41,649) and will commence deliveries this month. The N7 boasts advanced features such as a self-parking system and Lidar sensors.
Denza claims that the basic edition of the N7 can travel up to 702 km on a single charge. Eric Han, a senior manager at Shanghai-based advisory firm Suolei, commented on BYD's aspiration to establish itself as a premium EV manufacturer, stating, "Denza, along with its Yangwang series, serves as BYD's means of attracting affluent customers to its vehicles." Compared to competitors like Tesla, Nio, and Xpeng, BYD is known for producing more affordable EV models, priced below 200,000 yuan, approximately 30% cheaper than premium options.
The launch of the N7 signifies BYD's ambition to expand its product line and customer base, while venturing into the premium EV market to rival vehicles such as BMW's X3 and Audi's Q5. Zhao Changjiang, Denza's general manager of sales, revealed that the N7 has already received over 24,000 pre-orders, with 65% of customers intending to replace their current vehicles with Denza EVs.
Established in 2011 as a 50-50 joint venture between BYD and Daimler, Denza witnessed a change in ownership as BYD acquired a 40% stake from Mercedes in January 2022, increasing its overall shareholding to 90%. Denza's first production model, the D9, is a multipurpose vehicle that surpassed the significant milestone of delivering over 10,000 units for three consecutive months. In September, BYD plans to commence deliveries of its luxury car, the Yangwang U8, priced at 1.1 million yuan, which resembles the Range Rover in appearance. The U8 SUV exhibits impressive features, including a 1,100-horsepower engine, the ability to accelerate from 0 to 100km/h in 3.6 seconds, and unique four wheel-side motors that facilitate tank turns and lateral crab-walking.
In 2022, BYD, backed by Warren Buffett's Berkshire Hathaway, claimed the title of the world's largest EV maker, surpassing Tesla in terms of sales within mainland China.
Shenzhen Denza, the joint venture between BYD and Mercedes-Benz, has introduced its mid-sized N7 electric SUV in China to compete with premium models from BMW and Audi.
The N7 comes with a self-parking system and Lidar sensors, and the basic edition has a range of 702 km on a single charge.
BYD aims to position itself as a premium EV maker with Denza and attract high-net-worth clients to its vehicles.