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Chinese automaker BYD Co. has taken control of a joint venture with Mercedes-Benz Group AG in China as a growing number of foreign automakers erode their share of the world’s largest car market. BYD has acquired the remaining 10 percent stake it did not already own in a company set up to market the Denza premium electric vehicle brand, according to a statement late Monday that did not specify the value of the deal.
The move ends a 13-year partnership and comes at a time of heightened trade tensions between China and Europe, with the European Commission seeking to impose tariffs of up to 36.3 percent on Chinese electric vehicles. Founded as Shenzhen BYD New Energy Co., Denza was founded in 2011 by BYD and Mercedes, each with a 50 percent stake. The venture focused on premium electric vehicles, but weak sales led Mercedes, then known as Daimler, to cut its stake to 10 percent in 2021. Denza, which redefined its strategy the following year, gained new popularity in luxury passenger vans, with its D9 minivan set to be the best-selling vehicle in the category by 2023. Mercedes-Benz representatives in China, however, declined to comment on the matter.
The move ends a 13-year partnership and comes at a time of heightened trade tensions between China and Europe, with the European Commission seeking to impose tariffs of up to 36.3 percent on Chinese electric vehicles. Founded as Shenzhen BYD New Energy Co., Denza was founded in 2011 by BYD and Mercedes, each with a 50 percent stake. The venture focused on premium electric vehicles, but weak sales led Mercedes, then known as Daimler, to cut its stake to 10 percent in 2021. Denza, which redefined its strategy the following year, gained new popularity in luxury passenger vans, with its D9 minivan set to be the best-selling vehicle in the category by 2023. Mercedes-Benz representatives in China, however, declined to comment on the matter.