Denza EV Enters Production

3 years ago by Mark Kane 7

DENZA EV

DENZA EV

DENZA EV production

DENZA EV production

Denza begins its adventure on the EV market in China this month.

Production in Pingshan, Shenzhen already started. The production line at Shenzhen BYD Daimler New Technology Co. has annual capacity of 40,000 units, which is a lot and rather will not be fully utilized for now (the best selling plug-in model to date in China – the BYD Qin – found more than 5,000 customers in the first 6 months of 2014).

Thanks to local production with BYD, Daimler will be able to get significant market share in China, evading 25% import taxes.

Check out our first impressions on the Denza EV from 2014 Auto China (Beijing Motor Show) here.

Denza is coming on the market at the right time when a whole set of new incentives are being launched.

“Apart from lower taxes, Daimler’s ambitions in the Chinese EV/HEV market are boosted by government incentives. As the country looks to persuade consumers to purchase environmentally-friendly electric vehicles, government subsidies could lower the 369,000 yuan (around $60,000) starting price for a Denza by around 110,000 yuan, almost 30%. In addition, starting next month, China will also exempt new energy vehicles, including plug-in electric and hybrid-electric and fuel-cell vehicles, from a purchase tax. This will further lower prices for Denza and make the high-priced electric vehicles more affordable for customers.”

Denza expects a 15% market share by 2018, which if China EV sales hit their 400,000 level would translate to 60,000 cars. For comparison, in 2013, Mercedes-Benz sold in China some 218,000 ICE passenger cars.

Hubertus Troska, member of the Board of Management of Daimler AG responsible for China stated:

“DENZA is the first car that Daimler has engineered from the bottom up outside of Germany, and it clearly lives up to its promise to be the safest, most reliable and convenient electric vehicle from and for China. Our joint investment of more than 300 million Euros proves that DENZA is both by far the most serious local electric vehicle effort in China, unmatched by any other European competitor, and a key pillar of our electric vehicle strategy in the country.”

Arno Roehringer, COO of BDNT commented:

“It is certainly the right time and place for our DENZA as China undoubtedly has the potential to become the most important electric vehicle market in the future. We have invested in a state-of-the-art production line and base our production mainly on renowned Daimler processes. Throughout the entire production process we focus on quality to assure that our customers are getting the best Chinese electric vehicle.”

DENZA EV production

DENZA EV production

DENZA EV battery

DENZA EV battery

DENZA EV

DENZA EV

DENZA EV interior

DENZA EV interior

DENZA EV

DENZA EV

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7 responses to "Denza EV Enters Production"

  1. ggpa says:

    This vehicle is very similar to the B-class electric that Mercedes developed with Tesla’s help.

    Does the Denza also use Tesla parts? or Tesla IP?

    1. Mikael says:

      Both are cars made by Mercedes. Of course they will have similarities.

      There are surely no Tesla parts in this one. Since BYD is a world leader in batteries and EV drive trains and Mercedes is a leader in the car business they will hardly need anything from outside those two companies. 🙂

  2. Electric Bungaloo says:

    Nope, all EV tech is form BYD, Mercedes basiclly provides all other non EV parts from old B Class (The B-Class EV is a new B-Class) Denza uses tech from off production B Class from almost 10 years ago, the margins will be great, its just a cashcow to capitalize on incentives

    1. Jouni Valkonen says:

      +1

      I wonder when other automanufacturers realize that there is genuine market opportunity with non-subsidized electric cars?

      Must Tesla sell a million cars per year, before others wake up to reality? Tesla will already have production capacity 100 000 cars per year by the end of 2015 and this is already sizeable market share considering that these are highly profitable luxury cars with average selling price above $100 000.

      And 100 000 cars probably is not the demand ceiling for S and X. What will happen when Tesla is starting to advertice? What will happen when the global supercharging network is ready? What will happen when every city has a test drive opportunity for Tesla?

      And most importantly, what will be the demand for Tesla Model 3, if it is hard to predict the demand ceiling for S and X?

  3. DaveMart says:

    If China pushes ahead with legislation to make a third of Government vehicles electric, 40,000 cars a year will disappear without a gulp.

  4. MDEV says:

    The interior is nicer than MB B-Class

    1. Rob says:

      Yes, but you how the Chinese like to copy on the cheap…
      I wouldn’t be surprised if the wood was plastic and the leather wood 🙂
      It would be nice if they came in right hand drive though, it looks good!