China’s biggest electric vehicle (EV) maker BYD launched its most expensive model under its Denza brand to challenge BMW and Mercedes-Benz in the luxury segment as competition in the world’s largest auto market intensifies.
The Denza unit on Friday unveiled the six-seat SUV called Denza N9, priced at 389,800 (US$60,860) to 449,800 yuan, which is available in plug-in hybrid and pure-battery versions. Denza also sells D9 MPV, which was rolled out in 2022 and priced from 339,800 yuan.
The SUV will be equipped with BYD’s self-developed God’s Eye autonomous driving systems and can also support on-vehicle drone systems, both of which were first introduced in February, the company said at its headquarters in Shenzhen.
Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.
“We hope to prove to the world that China cannot only produce good cars, but also gain a foothold in the luxury market,” chairman and founder Wang Chuanfu said.
The N9 underscored BYD’s ambitions to build premium EVs and expand its product line and customer base. The EV maker sold about 3.84 million plug-in hybrids and pure EVs last year, making it the king of the segment with about 20 per cent share of the global EV market.
A Denza booth inside a shopping centre in Beijing in November 2023. Photo: Reuters alt=A Denza booth inside a shopping centre in Beijing in November 2023. Photo: Reuters>
The N9 could also heighten competition in mainland China’s luxury EV market with Li Auto, Zeekr, and Huawei-backed EV brand Aito. Smartphone maker Xiaomi also entered the segment with its SU7 Ultra, a four-door sedan that outran the Porsche Taycan Turbo GT over one lap at the Shanghai International Circuit and priced at nearly a quarter of the German car.
“Chinese EV makers started looking at the premium segment as they moved up the value chain to chase higher margins,” said Eric Han, a senior manager at Suolei, an advisory firm in Shanghai. “Their aggressive push will threaten Porsche, Mercedes-Benz and BMW.”
Most EVs in China are currently priced below 300,000 yuan and have largely replaced internal-combustion engine cars due to their high-performance batteries, preliminary self-driving technologies and digital cockpits.
Global brands dominated China’s premium car segment until local producers Li Auto and Xpeng made inroads last year with their intelligent EVs. Sales of Mercedes-Benz cars fell 6.7 per cent last year, while BMW suffered a 13.4 per cent drop and Audi’s deliveries declined 9 per cent, industry data showed.
