Daimler and BYD sign dentist equity transfer agreement Daimler will hold 10% of denza's shares

Reporters Yin Limei and Tong Haihua reported from Beijing

Daimler and BYD finalize the equity transfer plan of their joint venture company Denza.

On December 24, a reporter from China Business Daily learned from Daimler that Daimler Greater China Investment Co., Ltd. and its Chinese partner BYD Automobile Industry Co., Ltd. (hereinafter referred to as "BYD") signed an equity transfer agreement on adjusting the structure of its joint venture company, Shenzhen Denza New Energy Automobile Co., Ltd. (hereinafter referred to as "Denza"), and intends to complete the equity transfer between the two parties in Denza.

It is reported that after the completion of the equity transfer, Daimler and BYD will hold 10% and 90% of denza's shares, respectively. At present, the relevant matters are still subject to the approval of the relevant regulatory authorities, and the equity transfer plan will be completed in mid-2022.

As a pioneer of new energy vehicles, Denza has achieved steady development with the joint efforts of both shareholders. According to public information, Denza was jointly established by BYD and Daimler in 2011 with a registered capital of 5.76 billion yuan, and its main business is the design and development of passenger cars, electric vehicles, automotive electric drivetrains, automotive powertrains and passenger car parts with less than 9 seats. Denza currently has two models for sale, denza X plug-in hybrid version and pure electric version, and the official guidance price is 289,800 yuan to 357,800 yuan. 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.

It is reported that by jointly promoting the business development of the Denza brand, Daimler and BYD have gained valuable experience and better understanding customer needs in China, the world's largest and fastest-growing high-end new energy vehicle market. Thanks to this, Daimler and BYD have established a solid and mutually trusting partnership, jointly planning for denza's future development and making rapid decisions to better capture market opportunities. It is worth noting that Daimler and BYD will continue to promote their successful long-term partnership in terms of battery supply.

Specific to the operational level, BYD will give More support to Denza in the future to promote its success in the future. At the same time, Daimler will continue to support depressive development as a shareholder. "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. Daimler said.

Daimler and BYD have long been "related", and the two sides have carried out 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.

In the past two years, carbon neutrality has become an "accelerator" for the development and transformation of car companies, including multinational car companies such as Volkswagen, Nissan, BMW, Daimler, Porsche, Hyundai, Tesla, etc., Chinese car brands such as Geely and Great Wall, and important multinational auto parts suppliers such as Bosch, Continental, and Michelin have set carbon neutrality goals, and to achieve carbon neutrality, new energy must be the protagonist.

Against this backdrop, 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, and Daimler is confident in the growth potential of China's new energy vehicle market.

As one of the earliest enterprises in the world to clarify the new energy strategy, BYD has taken the lead in realizing the electrification layout in the "7+4" all-round transportation and travel field, with new energy vehicle footprints in more than 300 cities in six 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 said that it will uphold the concept of openness and sharing, and work with international partners such as Daimler to promote the transformation of energy consumption structure in the global mobility field.

(Editor: Zhang Shuo Proofreader: Yan Jingning)