BYD Increases Its Stake in Denza, And Mercedes-Benz Becomes A Bystander. Can It Help Denza To Regenerate?

Recently, there is good news from Denza Motors: It is expected to launch 3 new models in the Chinese market within two years, including MPV and SUV. This will bring a wave of assists to Denza, which is scarce in new models. The question is, will the addition of the new model allow Denza to launch a counterattack against the sluggish sales? It's not just new cars, of course.

Many people have heard of Denza Motors. After all, it is a joint venture new energy company between BYD and Mercedes-Benz. The company's cars were once sold in Mercedes-Benz's showroom, but they did not attract many consumers. The good news is that BYD, a big player in the field of new energy, is about to save the momentum. On December 24 last year, BYD and Daimler jointly announced that they planned to increase their capital by 1 billion yuan in their joint venture company, Denza. Why do both parties to the joint venture need to increase the capital of 1 billion yuan together? This is because when the two parties established the joint venture company in 2010, the share ratio was 50:50, so they only increased their capital by a total of 2 billion yuan.

I have to praise Mercedes-Benz here. Since the establishment of the joint venture, there has never been any conflict between Mercedes-Benz and BYD because of the joint venture. Even Denza cars are not selling well, and Mercedes-Benz is still about to adjust the share ratio between the two parties. Before, agreed to increase capital with BYD. Because after announcing the capital increase together, the two parties also decided to adjust the future equity of DENZA: BYD and Daimler will hold 90 percent and 10 percent of DENZA shares respectively. In other words, in the future, BYD will lead Denza Motors, and Mercedes-Benz, which has only 10 percent of the shares, will become a bystander.

One company, one voice, led by BYD is also good for Denza, and it is more conducive to BYD to introduce its own new technologies and new designs into Denza to help it fight the market, and Mercedes-Benz can also do a better job of assisting.

In addition, on February 14, Denza Automobile Sales and Service Co., Ltd. was established. The company is 100 percent invested by BYD Auto. It can be seen that BYD is also preparing to vigorously support the development of Denza Auto.

In addition, the capital increase and equity adjustment of both shareholders will be completed in the first half of 2022. That is to say, in the second half of 2022, Denza Motors will definitely have major moves and major adjustments. Let us wait and see whether it can achieve major development! What do you think?