Daimler and BYD agree on the future structure of the Denza joint venture

On December 24, 2021, Daimler Greater China Investment Co., Ltd. (hereinafter referred to as "Daimler") and its Chinese partner BYD Automotive Industry Co., Ltd. (hereinafter referred to as "BYD") signed an equity transfer agreement on adjusting the structure of its joint venture Shenzhen Denza New Energy Automobile Co., Ltd. (hereinafter referred to as "Denza") to complete the equity transfer between the two parties in Denza. Upon completion of the transfer, Daimler and BYD will hold 10% and 90% of Denza's shares, respectively. The matter is subject to the approval of the relevant regulatory authorities and is scheduled to be completed by mid-2022. As a pioneer of new energy vehicles, Denza has achieved steady development with the joint efforts of both shareholders. BYD will give Denza greater support in operations to promote its future success. At the same time, Daimler will continue to support depressive development as a shareholder. Daimler and BYD will continue to advance their successful long-term partnership.

Daimler and BYD are committed to accelerating the development of the Denza brand in the fast-growing Chinese new energy vehicle market. The Denza brand will launch new models in the Chinese market in 2022 to further expand the market. The Denza brand operations team will ensure that it continues to provide relevant services to existing customers.

Daimler and BYD have a long-term cooperation in the Chinese market. In 2010, the two sides signed an agreement on the establishment of a 50:50 R&D technology joint venture "Shenzhen BYD Daimler New Technology Co., Ltd." to develop and produce new energy vehicles in China and For China. The joint venture launched a brand new model under the brand name "Denza", which is the first Sino-foreign joint venture in China to focus on new energy vehicles.

Since the launch of the first model, the Denza brand has won a good reputation among Chinese customers for its reliable and high-quality products. By jointly advancing the business development of the Denza brand, Daimler and BYD gain valuable experience and better understand customer needs in China, the world's largest and fastest-growing high-end new energy vehicle market.

In 2019, Daimler became one of the first car companies to announce a comprehensive carbon neutrality target, covering all aspects of the automotive value chain. In July 2021, Daimler announced that it will be fully prepared for "full electric power" by 2030, subject to market conditions. China plays a key role in Daimler's accelerated electrification strategy. As of 2021, Daimler has launched four Mercedes-EQ pure electric models in China, three of which are locally produced. Together with Chinese partners such as ATD, Daimler is confident in the growth potential of China's new energy vehicle market.

As one of the first enterprises in the world to clarify its new energy strategy, BYD has taken the lead in realizing the electrification layout in the "7+4" all-round transportation field, and the footprint of new energy vehicles has spread to more than 300 cities in 6 continents and more than 50 countries and regions around the world. BYD continues to lead the industry forward through leading technology, and has successively launched core technologies such as blade batteries, DM-i super hybrids, and e-platform 3.0 to promote the high-quality development of the industry. BYD has always adhered to the concept of openness and sharing, and together with international partners such as Daimler, it has promoted the transformation of the energy consumption structure in the global travel field and helped "cool the earth by 1°C".

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