Chinese electric vehicle giant BYD officially launched its premium Denza brand in Europe on Monday during Milan’s Design Week, marking a significant step in the company’s ambitious expansion strategy across the continent. Once a 50:50 joint venture with Mercedes-Benz, Denza is now fully owned by BYD and positioned to compete directly with established European luxury manufacturers like BMW and Mercedes-Benz in their home market.
The high-profile launch event, attended by BYD Executive Vice-President Stella Li, signals the company’s serious intent to challenge European automakers on their home turf. According to Alfredo Altavilla, BYD’s special adviser for Europe, Denza will serve as the technological vanguard for the entire BYD group.
“It will anticipate tech features that will later appear on BYD brand cars,” Altavilla explained after the presentation, highlighting the brand’s role in showcasing cutting-edge innovations before they reach BYD’s mainstream models.
Impressive Performance and Strategic Timing
Denza’s European debut will begin with the launch of its flagship Z9 GT sport wagon in late 2024. This electric powerhouse delivers an astonishing 1,000 horsepower (or 962 hp, depending on specification) from three electric motors, fed by a substantial 100.1 kWh lithium-iron phosphate battery pack. A hybrid version of the Z9 GT is expected to follow in early 2026, combining a 2.0-liter turbo engine with three electric motors to produce 858 horsepower.
The timing of Denza’s European introduction coincides with BYD’s growing momentum in the region. In 2024, BYD captured a 2.8% share of the European EV market, a figure the company aims to significantly increase with the addition of hybrid vehicles and premium offerings to its lineup.
Ambitious Product Roadmap
While the Z9 GT will spearhead Denza’s European entry, BYD has outlined plans for a more comprehensive product range. By the end of 2024, the company will also introduce the D9 van to European customers. According to Altavilla, two additional off-road vehicles could potentially join the lineup in the future.
“The aim is to make Denza a full-liner premium brand,” Altavilla stated, emphasizing BYD’s intention to offer a complete range of luxury vehicles rather than just isolated models. This strategy indicates BYD’s confidence in Denza’s potential to establish a meaningful presence in Europe’s competitive premium segment.
Target Market and Pricing
Denza will target both traditional premium clients and younger customers with a particular interest in technology. While specific pricing details for the European market remain undisclosed, BYD has confirmed that the Z9 GT will exceed the highest price point in its current European range, which sits at €72,000 ($78,790).
This pricing strategy positions Denza in the premium segment while potentially undercutting established European luxury brands. In China, the Z9 GT is priced between 334,800 and 414,800 yuan (approximately $45,800 to $56,800), significantly lower than comparable models from European manufacturers like Porsche, whose similar vehicles start around 1,008,000 yuan ($138,000) in the Chinese market.
Manufacturing and Production Plans
Initially, all Denza models destined for Europe will be manufactured and exported from China, despite BYD’s ongoing development of European production facilities. The company’s first European plant in Hungary is scheduled to begin operations in October, with a second site in Turkey expected to come online in March 2026. Once fully operational, these facilities will have a combined annual production capacity of 500,000 vehicles.
Denza’s journey to European showrooms has been anything but straightforward. Originally formed as a joint venture between BYD and Mercedes-Benz in 2011, the brand struggled to gain traction in its early years, selling just 23,000 vehicles during its first decade of existence.
Mercedes-Benz began reducing its involvement in 2022, first decreasing its stake to 10 percent before completely exiting the partnership last year. Now under BYD’s full control, Denza has been revitalized with a clear strategy and ambitious global aspirations.
In China, BYD operates Denza alongside two other premium sub-brands: Fang Cheng Bao and Yangwang. According to industry reports, BYD plans to consolidate Fang Cheng Bao into the Denza lineup for Europe, starting with rebranding the Fang Cheng Bao Leopard 5 as a Denza model. Whether Yangwang vehicles will also be incorporated into the Denza brand for European customers remains unclear.
The Z9 GT’s specifications position it as a direct competitor to established models like Porsche’s Taycan Sport Turismo, though the Chinese vehicle exceeds its German counterpart in size. The Z9 GT is over 7.8 inches (200 mm) longer with a wheelbase that’s 8.8 inches (225 mm) longer than the Porsche.
As BYD sold over 4.2 million vehicles globally last year—with more than 90% of those sales occurring in China—the company clearly sees substantial growth potential in the European market. With Denza accounting for just over 3% of the group’s total sales in 2023, the brand’s European launch represents both a significant opportunity and a bold statement of intent in the evolving global automotive landscape.
