Mercedes-Benz has officially exited its luxury EV joint venture with Chinese automaker BYD, ceding full control to its former partner. The venture, known as Denza, was launched in 2019 to produce high-end electric cars for the Chinese market, where EV demand has been rapidly growing. Mercedes-Benz, which held a 50% stake in the venture, opted to sell its share as part of its broader strategy to focus on expanding its own EV lineup globally.
BYD, already a major force in the EV sector, is now set to take the reins fully. With Mercedes stepping aside, the Chinese automaker will drive the Denza brand independently, likely looking to leverage its strong position in the domestic market to push further into the premium EV space. Despite this exit, Mercedes-Benz remains committed to the Chinese market, the world’s largest for electric vehicles, and plans to continue its growth through its own brand.
The decision comes at a time when global automakers are increasingly re-evaluating partnerships and investments to sharpen their focus on the rapidly evolving EV landscape. For BYD, gaining complete control over the Denza brand could offer an opportunity to further enhance its reputation as a leading EV producer while catering to the rising demand for luxury electric vehicles.
With competition intensifying in the global EV market, both companies will now chart their own paths, with Mercedes concentrating on its global EV expansion and BYD aiming to strengthen its hold on the luxury segment in China. This development underscores the shifting dynamics of the electric vehicle industry, where automakers are realigning to better capitalise on future opportunities.
