Beijing: Chinese automaker BYD Co has moved to fully control a joint venture it had in China with Mercedes-Benz Group AG, as an increasing number of foreign carmakers dial back their exposure to the world’s biggest auto market.
BYD has acquired the remaining 10% of shares it didn’t already own in a company set up to market the Denza premium electric vehicle (EV) brand, according to a statement late Monday that didn’t provide a value for the deal.
Representatives for Mercedes-Benz in China declined to comment.
The move ends a 13-year partnership and comes during a time of heightened trade tensions between China and Europe as the European Commission works to impose additional tariffs on Chinese EVs of up to 36.3%.
A vote by member states on the proposal is planned for next week.
Denza, incorporated as Shenzhen BYD New Energy Co, was established by BYD and Mercedes in 2011 with each holding a 50% interest.
The venture focused on premium EVs but poor sales led to Mercedes, then known as Daimler, reducing its stake to 10% in 2021.
After a strategy reset the following year, Denza has found new popularity in its luxury people-mover vans with its D9 minivan ranking as the best-seller in the category for 2023.
According to local media reports, Denza is set to launch its Z9GT model later this week with a pre-sale price that starts from 339,800 yuan or about US$47,900. — Bloomberg
