In 2016, I just entered the automotive media industry. One hot afternoon, I was out shooting as usual, and happened to encounter a senior member of the evaluation team of the same company driving a pure electric SUV past me, quickly slowing down and turning around, and driving the car to my side.
"Hey! Did you know de Espress? That's the car I drive." The senior lowered his head out of the car window and asked me in a tone that examined whether I was professional.
In fact, long before I entered the industry, I knew about denza's pure electric brand, but I never test-drove its car. I drove the car around a few times and then stood by the side of the car and talked to him. In short, we have a lot of common positive reviews of its dynamic response, NVH, and so on. I also care about some of the design details, because there is a mercedes-Benz shadow, and these make us fully curious about this car.
"But, what to say..." With the final turn, the two of us fell into an awkward silence, with only wide eyes and small eyes.
There is no doubt that we have the same feeling about Denza: as the first joint venture brand in China to focus on new energy vehicles, people are full of curiosity and expectations. But there is no denying that there are some concerns and doubts in the middle.
First, grow in anticipation and doubt
This kind of complex emotion is not only we have, most people will also have. As it turns out, such concerns are not unfounded.
In 2010, BYD and Daimler jointly established Shenzhen BYD Daimler New Technology Co., Ltd., each holding 50% of the shares. This is the first joint venture in China to focus on new energy vehicles, and Denza has become the first joint venture brand in China to focus on new energy vehicles. By 2014, Denza Automobile officially entered the market.
The following years were the years of the explosion of new energy vehicles in China. In 2015, 113,000 pure electric vehicles were sold, and by 2020, this number has risen to 1.115 million units, a full tenfold increase.
This growth just shows that when Denza entered the market in 2014, it was facing a "desolate but hopeful land", and he himself was more like the first generation of hard pioneers carrying a hoe, although there was no glamorous appearance, but the firm back was really great.
Under such conditions, Denza got a good report card in the first full natural year (2015) after entering the market, with annual sales of 2953 vehicles. This result is better than the market performance of Tesla's first full calendar year after entering China.
However, at that time, the domestic pure electric vehicle market environment was not healthy, and the product formation was distributed in a saddle shape. On the one hand, Tesla, which the rich use to show their identity, on the other hand, there are small electric vehicles of up to 100,000 yuan that are favored by the middle class who are cautious and throbbing and want to taste the early adopters, such as Zhidou and Chery eQ. This is a bit embarrassing for the target high-end market.
As a result, although the sales of pure electric vehicles in China have risen upside down, denza's sales have not risen with the flip. In this case, BYD and Daimler continued to increase the capital of Denza, increasing the capital seven times from 2012 to around 2018, while the equity ratio between the two sides remained at 50:50.
Under this equity balance and continuous capital increase, it is revealed that both parties have always had hopes for the performance of the Denza brand in the Chinese market. But if you look at it another way, this balance seems a bit awkward. This may mean that neither of the two sides has come out to play a leading role, and in the 7 capital increases, the most is only 500 million yuan for each side, and the minimum one is only 150 million yuan, which is a bit of a drop in the bucket for The momentum that is growing in a competitive market. Although the two sides continued to increase their capital after 2018, they were not too strong. And these also more or less show the cautious attitude of both BYD and Daimler.
Has Denza become a pity chicken rib for tasteless abandonment?
It is obviously inappropriate to think like this. No matter what, Denza has always grown under the efforts and expectations of both sides. At the same time, in 2016, as the only Chinese electric vehicle that participated in and successfully completed the 80-day pure electric vehicle global tour, Denza undoubtedly wrote a brilliant stroke for the development history of China's pure electric vehicles.
Second, in 2022, China's new energy looks at Denza
The time comes to 2021. Just a few days ago, BYD Automotive Industry Co., Ltd. and Daimler Greater China Investment Co., Ltd. signed an equity transfer agreement on adjusting the structure of its joint venture company, Shenzhen Denza New Energy Automobile Co., Ltd., and the two sides jointly announced that they intend to increase the capital of their joint venture company Denza again.
With these new news, the future structural adjustment of Denza has surfaced. These adjustments give us every reason to believe that Denza will be one of the biggest highlights in China's new energy vehicle field in 2022. Here's the key information I've put together for you:
After the completion of the equity transfer agreement, BYD and Daimler will hold 90% and 10% of depressing shares respectively
BYD and Daimler each plan to increase deforestation by 1 billion yuan
Equity transfer and other related matters are scheduled to be completed by mid-2022
BYD will provide Resources and Assistance to Denza in product research and development, intelligent manufacturing, channels and sales services
Zhao Changjiang will serve as the general manager of depressive sales division
In the future, BYD's business will be composed of four sectors: Dynasty Network, Ocean Network, Denza and high-end brands
Denza expects to launch three new vehicles over the next two years, including MPVs and SUVs
In the future, the services of existing Denza customers will not be affected
After the completion of the equity transfer, BYD will play a leading role with 90% of the shares, while the two sides are still carrying out in-depth cooperation and jointly injecting 2 billion yuan of "fresh blood" into Denza.
If there is a little hesitation and caution in the balance between the two sides before, then the momentum in 2022 will be a full-power momentum, and there will no longer be any worries and baggage. BYD will rub more sparks with Denza in large sections such as technology and services, which is the main reason why Denza is looking forward to in 2022. Next, let's talk about the aspects in which such a change will bring about changes for Denza.
Third, inject a needle of "technical blood"
If Denza can get more in-depth help from BYD in technology research and development and manufacturing and obtain key resources, it will be like drinking a cup of chicken blood. If you want to stand firm and develop in the field of new energy, technology is really critical. unbelief? Just look at BYD.
In the recent November, BYD ushered in a bumper harvest, with single-month passenger car sales reaching 97,242, of which new energy vehicles reached 90,121, accounting for 92.6% of sales. BYD has become the first brand of new energy vehicles in China and even the world. And all this is the result of the free choice of the market, without excessive policy intervention.
From 60,508 new energy sales in August to 90,121 units in November, BYD's new energy vehicles have achieved stable step-by-step development. Among them, BYD's DM-i super hybrid system, blade battery and e-platform 3.0 and other core technologies have played a driving role. Regarding this aspect, I have previously made an article specifically for analysis, and I will not repeat it here. In short, BYD's technological accumulation in electronics and semiconductors has become the power source for the success of BYD's new energy vehicles, and BYD's own unique highly integrated industrial structure makes technology research and development more targeted, more efficient and lower cost. And these advantages are exactly what Denza desperately needs. After all, time is pressing, compared to the long-term accumulation, "take" can make Denza accelerate quickly and comprehensively.
The DM-i Super Hybrid system combines power performance with fuel economy, and the Snap Cloud-Plug Hybrid 1.5L engine plays an important role. This engine, specially built for plug-in hybrid systems, eliminates unnecessary components to improve engine thermal efficiency, and 43.04% thermal efficiency is still the thermal efficiency ceiling of the internal combustion engine. In addition, BYD's highly integrated three-electric system brings the benefits of better structure and smaller size, providing space for the development and installation of high-power motors. The powerful electric motor brings powerful acceleration performance to models equipped with the DM-i system and pure electric models.
Blade batteries solve battery safety problems very well. The lithium iron phosphate battery used in the blade battery has better stability and has stronger charge and discharge resistance than the ternary lithium battery. Blade batteries improve the battery volume and utilization rate by changing the battery structure, and improve the energy density of lithium iron phosphate batteries, so that ternary lithium batteries with energy density advantages no longer have absolute advantages. The instability of ternary lithium batteries is the source of safety anxiety for many new energy vehicle owners.
The characteristics of safe, high-performance vehicles complement Denza's mid-to-high-end positioning. If a few years ago BYD was unable to provide technology that meets the demand, then today the technical barriers have been broken, and the penetration of technology will be deeper. In fact, when I test drive BYD's new energy vehicles, I always feel that my concept is still stuck more than a decade ago, because when I was surprised that a domestic new energy vehicle can have the acceleration of shoulder-to-shoulder supercar and the driving quality of luxury cars, I realized how outdated and stale my concept was.
At the 2019 Guangzhou Auto Show, the arrival of Denza X has made Denza the focus of the public again, and it also represents that Denza has entered a new stage. In the field of design and technology, Denza X has played a pioneering role. For example, the appearance was written by Li Yihuan, who had led the design of mercedes-benz's second-generation CLS, and the new design was in line with the design of the EQ family of Mercedes-Benz after that. In addition, Denza X PHEV models and EV models are equipped with BYD's three-electric system, and the power system of Denza X PHEV models is consistent with the Tang DM three-engine four-wheel drive version, and the acceleration of 100 kilometers has reached 4.3S.
The deep technical impact has already brought results. So far in 2021, desist has sold more than 4,200 units. Of course, we can't compare this result with 2015 and then announce that sales have doubled, but this result is enough to make Denza, BYD and Daimler smile.
Fourth, although the product is good, the buyer is also important
In addition to technology, it is equally critical to adapt and help in sales channels and after-sales service. Among them, the adjustment of personnel is worth paying attention to. It is understood that the previous Denza CEO Ai Fengjie Alex Ai will continue to serve as the CEO of Shenzhen Denza New Energy Automobile Co., Ltd., while Zhao Changjiang, former general manager of BYD Automobile Sales Co., Ltd., will serve as the general manager of Denza's sales division.
This also means that BYD will give more support and experience sharing in Denza's future sales channels and after-sales service.
Initially, Denza adopted a combination of franchised dealers and joint dealers. In 2014, when the domestic new energy vehicle market was not so hot, a new new energy brand positioning in the middle and high-end, it was very difficult to attract customers through the franchise dealer channel to open up the market, on the one hand, the brand awareness was not enough, on the other hand, there were not so many target customers who would go to the franchise 4S store to see the car (this is also one of the reasons why many new car-making forces set up experience stores in the mall later). The joint dealer model adopted by Denza with the help of Mercedes-Benz sales channels has not been large-scale.
After July 1, 2019, Daimler assigned the Denza automobile sales system to its subsidiary, which is obviously in preparation for the upcoming Denza X and the future denza force. But the problem is that at that time, Mercedes-Benz did not form a pure electric vehicle sales in China, and the first pure electric vehicle EQC was still making intensive preparations for the listing. The vast majority of customers who go to the Mercedes-Benz 4S store are to buy Mercedes-Benz fuel models, but also attach great importance to the brand value of Mercedes-Benz, their interest in new energy vehicles is questionable, and presumably they will not buy Mercedes-Benz money temporarily to buy Denza.
If BYD can give more penetration in sales and after-sales, it will undoubtedly be a good thing for Denza. From the perspective of BYD's passenger car sales structure, basically new energy vehicle sales can account for about 90% of the total sales of passenger cars every month, in other words, BYD has become a brand that most new energy customers can't get around, in fact, as long as my friends around me have the intention or interest in buying new energy vehicles, they will definitely understand BYD. When these customers suddenly find a new energy vehicle that has both BYD technology and Mercedes-Benz design and high-end sense, how can they not be moved?
Although the specific channel information of Denza's future has not yet been announced, it is clear that in terms of customer groups, BYD and Denza are more compatible. At the same time, we cannot ignore BYD's reputation and brand influence accumulated in the field of new energy vehicles, and these soft powers are no less important to Denza than to play a shot in the "blood of technology".
Taking the goal ahead, BYD's footprint of new energy vehicles has now spread to more than 300 cities in 6 continents and more than 50 countries and regions around the world. If BYD and Daimler can jointly give denza greater support in terms of sales and after-sales service, then Denza's road to globalization will be smoother.
Fifth, it seems to be unbalanced, but it is actually balanced
Some people may feel that this equity transfer has actually broken the balance between BYD and Daimler in Denza Automobile, and it will be difficult to see Daimler's shadow in the future.
I have a negative view of this view. Because at the same time as the equity transfer, BYD and Daimler each increased their capital by 1 billion yuan to Denza. It makes it hard for me to see Daimler as an "outsider."
It should be said that for the future development of Denza and looking forward to this point, Daimler and BYD are balanced, and the equity transfer is more from the perspective of Denza's development, Daimler's participation will not be less, and the in-depth cooperation between the two sides will continue.
After all, China' big market is too important for Daimler. In 2019, Daimler became one of the first car companies to announce its goal of being fully carbon neutral. In July 2021, Daimler announced that it will be fully prepared for "full electric power" by 2030, subject to market conditions. The vast Chinese market is a necessary condition for Daimler to achieve this goal, which can be seen from two aspects, one is that Daimler quickly launched four Mercedes-EQ pure electric models in China, and the other is that three of these four models are locally produced.
To this day, I can't forget the unconcealed love I felt when I first test-drove the Mercedes-Benz EQC in 2019. Admittedly, in terms of power performance and handling, EQC lacks some passion, but the linear output of power and the overall sense of high quality when driving make me feel the craftsman quality of the century-old brand. It is conceivable that when such quality collides with BYD's outstanding new energy technology, it will definitely create a brilliant spark.
Article summary
We should not lose sight of the importance of depressing market experience for BYD, Daimler and even China's new energy vehicles.
Similarly, as a pioneer, the momentum should not become a joke in our mouths, let alone an object of our mourning, it should be and will certainly receive more respect and expectation from us.