Bet on new energy vehicles! BYD and Daimler each increased their joint venture by 1 billion yuan

BYD announced on Friday that the company and Daimler intend to increase the capital of Shenzhen Denza New Energy Automobile Co., Ltd. ("Denza") by 1 billion yuan on a proportional basis. After the completion of the capital increase, BYD and Daimler will each continue to hold 50% of depressing shares.

BYD also said that the two sides will also adjust the equity of Denza in the future. After the completion of the equity adjustment, BYD and Daimler will hold 90% and 10% of denza shares respectively, which is subject to the approval of the relevant regulatory authorities, and the capital increase and equity adjustment are expected to be completed in the first half of 2022.

BYD said that the company will pour more resources and core technologies into the Denza business, help Denza to a new level in product research and development and intelligent manufacturing, channels and sales services, and jointly promote the better and faster development of the Denza brand with Daimler. On the basis of Denza's business cooperation, the two sides will further deepen the partnership and expand the scope of cooperation.

According to the plan, Denza will launch three new products in the Chinese market in the next two years, including MPV and SUV models.

According to public information, Denza was established in 2011 as a technology joint venture jointly established by BYD and Germany Daimler in a 50:50 equity ratio, with an initial registered capital of 2.36 billion yuan, and Wang Chuanfu, chairman of BYD Automobile, served as the director of Denza Automobile, becoming the first Sino-foreign joint venture company focusing on new energy vehicles in China.

After the establishment of the company, the shareholders have injected capital into it many times. Most recently, in January this year, its registered capital increased from the original 5.06 billion yuan to 5.76 billion, an increase of 13.83%. The total investment increased from 6.56 billion yuan to 7.16 billion yuan, an increase of 10.67%.