Denza, BYD’s JV with Mercedes-Benz, launches second EV as Chinese marque’s premium segment foray gathers pace

The N7, Denza’s second production model, will start at 301,800 yuan (US$41,649)

Denza, along with the Yangwang series, carries BYD’s hopes of attracting high-net-worth clients to its cars, analyst says

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The basic edition of Denza’s N7 can go as far as 702 kilometres on a single charge, the carmaker says. Photo: Handout

Published: 10:15pm, 3 Jul 2023Updated: 10:23pm, 3 Jul 2023

Shenzhen Denza New Energy Automotive, the electric-vehicle (EV) venture between BYD and Mercedes-Benz, has launched a mid-sized sport-utility vehicle (SUV) in China to take on premium models assembled by the likes of BMW and Audi.

Denza said on Monday that the N7, the second production model assembled by its namesake marque, will start at 301,800 yuan (US$41,649). Deliveries of the EV, which features a self-parking system and Lidar (light detection and ranging) sensors, will begin this month, the company said.

The basic edition can go as far as 702 kilometres on a single charge, Denza said.

“BYD has set itself lofty goals, as it hopes to hone its image as a premium EV maker,” said Eric Han, a senior manager at Suolei, an advisory firm in Shanghai. “Denza, along with its Yangwang series, carries BYD’s hopes of attracting high-net-worth clients to its cars.”

A Denza N7 assembled by BYD’s joint venture with Mercedes-Benz is displayed during the model’s launch in Beijing on Monday. Photo: Handout

BYD is known for assembling cheaper EV models that are priced below 200,000 yuan – about 30 per cent cheaper than premium models from Tesla and Chinese competitors such as Nio and Xpeng.

The launch of the N7 represents BYD’s ambitions of building premium EVs and expanding its product line and customer base. The new EV is, for example, targeting BMW’s X3 and Audi’s Q5, both of which are premium petrol-powered vehicles that cost 396,900 yuan and 420,500 yuan, respectively.