Home » Warren Buffett-Backed BYD Sets up DENZA Auto Sales Service Company

Warren Buffett-Backed BYD Sets up DENZA Auto Sales Service Company

by SEP Editor
3 mins read
(Photo Credit: DENZA)

What Happened: 

According to Tianyancha APP, DENZA Auto Sales Service Ltd. was registered on February 14, with legal representative He Zhiqi, registered capital of 50 million RMB($7.9 million) and registered address in Guangming District, Shenzhen. 

The business scope includes new car sales; new energy vehicle sales; new energy vehicle electric accessories sales, etc. The company is 100% owned by BYD Auto Industry Co.

Some context:

Daimler Greater China Ltd. and BYD Auto Industry Co., Ltd. on December 24 last year signed an equity transfer agreement to realign the structural setup of their joint venture, Shenzhen DENZA New Energy Automotive Co., Ltd.

  • Following the transfer, Daimler will hold 10% of the equity interest, while BYD will hold 90%. The equity transfer is subject to regulatory approvals and is planned for mid-2022.

Why it matters:

The establishment of the DENZA Auto Sales Service Company is considered as a signal for BYD to officially launch a “high-end brand”.

At a symposium last December, BYD said that it will launch a high-end brand next year, within a price range of 500,000 to 1 million yuan. The brand will be independent in terms of products, sales service network and operation team. The first model will be an off-road vehicle.

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