After leaving Mercedes-Benz, BYD’s single-parent parenting strategy has flourished.

After debuting at the Munich Auto Show in Germany for the first time, Denza accelerated its pace of internationalization.

In March this year, Denza Sales General Manager Zhao Changjiang revealed on social platforms that after completing its participation in the Thailand Auto Show, Denza D9 intends to enter the Hong Kong, Macau and European markets, and the sales price may be as high as 600,000-1 million yuan; in September, Zhao Changjiang confirmed the news of Denza's "going overseas" on social media. In 2024, Denza D9 will first land in Hong Kong.

It is worth mentioning that in the process of interacting with users, Zhao Changjiang responded to the public’s pricing speculation on Denza D9. He believed that 800,000 was an “approximate” price. As a result, the price of the top-end DENZA D9 may double compared to the domestic price.

▲ Zhao Changjiang

After leaving Mercedes-Benz, life seems to be better.

Mercedes-Benz withdraws its shares, and "single parents" are reborn

In 2010, Mercedes-Benz and BYD jointly founded Denza with 50% investment each. The "marriage" between Mercedes-Benz and BYD was considered far-sighted at the time. Mercedes-Benz sensed the business opportunities in the domestic new energy market in advance, and the tacit understanding between the two parties jointly contributed to the earliest pure electric luxury brand in China at that time.

Mercedes-Benz has domestic market channels that have been cultivated for many years, and BYD also has a profound foundation in three-electric technology. The cooperation between the two parties can be said to be based on what they need and they hit it off immediately. At least on paper, Denza, as a pioneer in the domestic luxury pure electric market, looks to have a bright future.

Denshi is a brand born on the shoulders of giants.

Wang Chuanfu described the particularity of Tengshi this way.

Dengshi, which carries the hope of luxury pure electric vehicles, has indeed received real money investment from both parties in the next few years. In 2014, Denza launched its first pure electric model in Beijing, and successively launched Denza 300, 400 and 500 models; at the 2019 Shenzhen Auto Show, Denza launched its new pure electric concept model Concept X in the world in November of the same year. , based on the design concept of the concept car, Denza finally launched a new pure electric/plug-in hybrid SUV Denza X.

However, Denza's layout in the pure electric field may be too advanced, causing serious "acclimatization" in the domestic new energy market. According to relevant statistics, since the first model was launched in 2014, the cumulative sales of Denza as of 2020 are only 14,000 units; and the Denza X, which is fully controlled by Mercedes-Benz, has also fallen into a quagmire. There will be more than 4,000 units.

In the 12 years since Denza was founded, this luxury pure electric brand born on the shoulders of giants has suffered a cumulative loss of 5.2 billion yuan.

The long-term return on investment was not proportional, which made Mercedes-Benz begin to doubt Denza's future. In the end, Mercedes-Benz CEO Kallenius officially stopped the Denza joint venture project in 2021. Mercedes-Benz and BYD signed a share transfer agreement, and the shareholding ratio of both parties in Denza was changed from 5:5 to 1:9. After completing the transfer of 40% of the shares, it was basically announced that Mercedes-Benz had given up Denza, while BYD had absolute control of Denza.

The trend has changed from "the child of Daimler and BYD" to "the child of a single parent".

▲ Mercedes-Benz CEO Kallenius

Interestingly, Mercedes-Benz's withdrawal of shares did not bring a "devastating" blow to Denza. Without the brand endorsement of Mercedes-Benz, Denza began to live its own life.

One year after Mercedes-Benz withdrew its shares, Denza released its first high-end MPV D9. At first, most people were not optimistic about the prospects of Denza D9, especially in the Chinese market where the share of MPVs is not large. In the domestic automobile market, MPV models have maintained a market share of 5% for a long time. The extremely small space is accompanied by strong competition. Traditional joint venture MPVs represented by Buick GL8 have long occupied the right to speak. If you want to rely on the MPV market, Even in the new energy MPV market, which has a smaller share, the "turnaround" of the brand is nothing more than a dream.

However, something magical happened. In the first full month of delivery of Denza D9 after its launch, a total of 3,451 new cars were delivered, and the average price of the models sold reached 415,000 yuan. In the following month, D9 sales increased steadily, with a month-on-month increase of 73.9%, and more than 6,000 new cars were delivered in a single month. ; At the beginning of 2023, Denza D9 achieved a structural breakthrough, with its single-month sales ranking among the top three new players in delivery. It only took Denza three months to gain a firm foothold in the luxury MPV market.

The fantastic start continues. In June, Denza D9 replaced Buick GL8 to become the domestic monthly MPV sales champion, and became the top MPV model in the first half of the year. This is the first time that a domestic new energy MPV has surpassed traditional joint venture brand MPVs in sales, and it is also the first time that GL8 has lost the monthly MPV sales championship. In the past August, Denza's total sales volume in a single month was 11,515 units, and it has been the sales champion of luxury MPVs with more than 300,000 units for 8 consecutive months. The total sales volume of Denza D9 has also officially hit the 100,000 mark.

The D9, which was originally not optimistic, took on the role of "sharp knife" in sales, and Denza ushered in a rebirth in the high-end luxury market.

A fresh trick cannot be eaten all over the world

The success of Denshi D9 is unexpected, but the reborn Denshi cannot rely solely on D9.

As we mentioned in the article "New Domestic Forces, Tearing Off the Last Fig Leaf of Joint Venture MPVs", the Denza D9 is like the "Renault Espace" in the electric era. It took the lead to land on the beach and let more car companies see the new technology. Energy's likelihood of success in the MPV market.

More and more new power car companies are beginning to plan their own MPV models, and the car companies are deploying extremely quickly. For example, the Xpeng X9, which has been unveiled by the Ministry of Industry and Information Technology, and the Ideal Mega, which has been constantly showing up in road tests recently, will be released in the upcoming fourth quarter. In addition to the unveiling of leading new forces, other traditional car companies are also making moves. It is rumored that New MPV models such as Qi E8 and Weipai Alpine are also constantly compressing the already small MPV market share.

Under the carve-up of multiple brands, Denza D9 will usher in fierce competition in the future. It is difficult to guarantee that it will not face the problem of price reduction and quantity preservation. If Denza wants to go further in the high-end luxury market, it needs to extend the advantages of D9 The second model track is released.

▲Xpeng X9

▲Ideal Mega

Standing firm on high-end luxury does not necessarily mean rushing upwards. Compared with the more "pure" rise, the decline is the key next step to gain momentum. Denza N7, in addition to sharing the sales burden of D9, also pins BYD's ambition to enter the second half of new energy.

On September 26, at the Denza N7 Intelligent Communication Conference, Denza officially announced that the N7 will be equipped with NVIDIA's new NVDIA DRIVE Orin intelligent driving exclusive platform for the first time. Based on the new generation of intelligent driving high-performance platform, Denza launched the "God of God" "Eye" high-end intelligent driving assistance system – Denza Pilot high-speed intelligent driving package.

At the hardware level, the Denza Pilot high-speed smart driving bag is equipped with the NVDIA DRIVE Orin system-on-chip, which provides up to 254TOPS of computing power and is connected to 33 high-performance sensing components and 2 lidars to cooperate. The smart driving package covers the main functions of today's L2 driving, including automatic parking and high-speed NOA.

After the launch of Denza's high-speed smart driving package, Denza N7 will provide three versions of assisted driving capabilities, namely the basic J3+ vision solution, the high-speed package OrinN chip and the high-end Orin X+ dual lidar solution. The smart version selection adapts to the needs of more people.

It is worth mentioning that there are channel sources saying that the current BOM cost of Denza N7’s high-speed OrinN solution is roughly 7,500-9,500 yuan, while the after-installation solution launched by Denza for old car owners is priced at only 10,000 yuan, which is for new cars. The main price is 12,000 yuan. To a certain extent, BYD has brought the "price butcher" thinking from selling cars to intelligent assisted driving functions.

Zhao Changjiang said at the communication meeting that Denza N7’s smart driving function will undergo high-speed NOA internal testing in October, complete high-speed NOA push in December, and push urban NOA in the first quarter of 2024. The entire rhythm is tight and rapid. .

Starting from the N7, BYD began to display its smart driving ambitions. After Denza completed its rebirth, it completed its model matrix with high efficiency and high quality. After leaving Mercedes-Benz, my life became better.

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