Mercedes-Benz Exits Chinese Electric Vehicle Joint Venture with BYD
18th Sep 2024
Mercedes-Benz Group has fully withdrawn from its electric vehicle joint venture with Chinese automaker BYD, the company announced on Tuesday. The German automaker sold its remaining 10% stake in the Denza venture, having already reduced its share from 50% to 10% in 2021. BYD now wholly owns Denza, which focuses on producing luxury electric vehicles.
Initially launched in 2011, the joint venture between Mercedes, then known as Daimler, and BYD struggled to gain traction. In 2021, Denza sold just 5,000 vehicles, prompting Mercedes to scale back its involvement. However, under BYD’s leadership, Denza has seen significant growth, selling 10,000 vehicles in 2022 and 128,000 in 2023. The brand plans to expand further, including into markets such as Europe and Australia, although potential European tariffs on Chinese EVs could be a challenge.
Despite exiting Denza, Mercedes-Benz remains active in other Chinese joint ventures with Zhejiang Geely Holding Group and BAIC Motor.
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