During the prestigious Milan Design Week, Chinese electric vehicle giant BYD officially launched its high-end brand, Denza, in the European market. This strategic move marks a significant expansion for BYD, which was the sixth largest global car manufacturer in 2024. Denza aims to compete with established luxury brands like Porsche and Mercedes-Benz, presenting itself with the slogan "Elegance in Motion."
Denza, which has been operating in China since 2012 as a partnership between BYD and Daimler, faced near bankruptcy four years ago. However, after BYD acquired the brand in 2022, it relaunched Denza with a complete range of vehicles. In 2024, Denza produced 126,000 units, ranking 20th among electric and hybrid brands in China, placing it behind Xiaomi's 136,000 units but ahead of BMW's 116,000 units.
The brand will debut in five key European markets: the United Kingdom, Germany, France, Italy, and Spain. In France, consumers can expect the first models to become available by late 2025 or early 2026, distributed through a selective network of BYD dealerships. Initially, five distributors will carry the Denza brand in France, with plans to expand this network to around 40 points of sale, comparable to the scale of Porsche's distribution.
The flagship model for Denza in Europe will be the Z9 GT, a four-door coupe whose design is inspired by the shooting brakes of the 1970s. This model is equipped with three electric motors that produce nearly 1,000 horsepower, allowing it to accelerate from 0 to 100 km/h in just 3.4 seconds, with a range exceeding 500 km according to the WLTP cycle. The Z9 GT is built on BYD's innovative e3 platform, which has seen an investment of 100 million euros and the involvement of over 800 engineers. This platform boasts unique features such as rear-wheel steering and the ability to turn in place.
Jamel Taganza, an associate at Inovev, commented on the technological advancements of the e3 platform, stating, "Denza arrives with arguments that resonate with Chinese consumers, as the e3 platform showcases visible technology, which is not always the case in the automotive industry. While features like parallel parking or crab walking may not be practical daily, they help create an image that can benefit BYD and potentially other Chinese brands."
However, Taganza also cautioned about the challenges of establishing a high-end brand in Europe, noting, "Entering the luxury market is complicated in Europe, where the market is dominated by European manufacturers." He cited Lexus as an example, a brand that has been successful in the United States but has struggled to gain traction in Europe despite being present for over 30 years. Taganza added, "In the luxury sector, there is limited market space outside of China; the Middle East is a potential market, but it is low-volume, and the U.S. market is largely closed to Chinese manufacturers."
Stella Li, BYD's executive vice president, emphasized the brand's focus on style and technology, stating, "We will rely on two pillars: style and technology. Our slogan reflects this ambition: ‘Technology Drives Elegance.’ By choosing Milan Design Week for Denza's introduction, we highlight our strategy, as we have observed that European customers are more sensitive to style compared to Chinese consumers, who are more attracted to technology."
While BYD has not disclosed specific sales targets for Denza in Europe, analysts estimate that the brand could achieve approximately 5,000 annual unit sales. This figure, while modest, would help solidify BYD's international image. Denza also plans to introduce additional models in Europe within two years, including the D9 minivan and an SUV. The Z9 GT, currently priced at 72,000 euros in China, is expected to retail for around 100,000 euros in Europe, reflecting its premium positioning.
Meanwhile, BYD's Denza line is not the only brand making waves in the electric vehicle market. At the Auto Shanghai show, BYD unveiled the Denza Z, a new deep-blue model that showcases the company's ambitions to compete with high-end Western brands. This launch comes at a critical time for the luxury automotive market, as competitors such as Porsche have reported declining sales in China, with a 28% drop last year attributed to challenging economic conditions.
BYD's rise has been remarkable, as it surpassed Tesla in global sales of electrified vehicles last year. The company reported a 60% surge in sales in the first quarter of 2025, selling just over one million new-energy vehicles, which include battery-powered cars, hybrids, and commercial vehicles. BYD's total sales for 2024 reached $107 billion, a 29% increase from the previous year, with deliveries totaling 4.27 million cars.
As the global automotive industry faces challenges such as tariffs and trade wars, BYD is strategically positioning itself to capture a larger share of the international market. The European Union has imposed hefty duties on EV imports from China, and the former Biden administration's 100% tariff effectively barred Chinese competitors from the U.S. market. In response, BYD aims to double its sales outside China to over 800,000 cars by 2025, leveraging its cost advantages by assembling vehicles in local markets.
In February 2025, BYD launched the "God’s Eye," an advanced driver-assistance system designed to rival Tesla's Full Self-Driving feature. Additionally, the company recently unveiled a battery charging technology that adds 250 miles of range in just five minutes, outpacing Tesla's Superchargers, which take 15 minutes to add 200 miles. The competitive landscape was further underscored when CATL, the world's largest producer of electric vehicle batteries, announced an upgraded battery promising a range of 320 miles.
As BYD continues to innovate and expand its offerings, the company is poised to reshape the electric vehicle market. With Denza's launch in Europe, BYD is not just entering a new market but is also setting its sights on establishing a significant presence in the luxury automotive segment, challenging long-standing competitors and redefining consumer expectations.
