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MILAN: Chinese electric vehicle giant BYD is expanding its presence in Europe with the launch of its premium Denza brand, despite escalating trade tensions between China and the European Union.
The automaker announced Wednesday at Brera Design Week in Milan that its first European Denza model, the Z9GT, will arrive in showrooms by the fourth quarter of 2025. The station wagon-style vehicle will be available in both all-electric and plug-in hybrid versions, though BYD did not disclose pricing or an exact delivery date.
BYD, which already sells EVs in Europe, originally established Denza in 2010 as a joint venture with Mercedes-Benz parent company Daimler. The brand was revamped in 2021, with Mercedes-Benz reducing its stake to 10%.
The move comes as the EU imposes a 17% tariff on BYD’s battery-electric vehicles, citing “unfair” Chinese subsidies. Officials from China and the EU discussed EV supply chain concerns during a meeting in Beijing last month.
A second Denza model, the seven-seat D9 multi-purpose vehicle, is also planned for Europe, though BYD did not provide a timeline for its release.
“We’re thrilled to be introducing Denza to European customers, starting here in Milan and accelerating as 2025 progresses,” said Stella Li, BYD’s executive vice president.
Overseas Sales Surge
BYD has aggressively expanded its global footprint since late 2022. In the first quarter of this year, the company sold more than 206,000 vehicles outside China—more than double the same period last year—putting it on track to surpass its 2023 overseas sales.
The automaker reported an 86% year-over-year revenue increase to 8.5 billion yuan ($1.2 billion) in Q1, according to a Tuesday filing. BYD also set a new record with 986,098 new energy vehicle sales in the quarter, as it phases out traditional gas-powered cars.
While most of BYD’s models are priced below Tesla’s, the Chinese automaker surpassed Tesla in global EV sales last year. In the first quarter, BYD sold 416,388 all-electric passenger cars in China—more than double Tesla’s 172,754 deliveries in the country, according to the China Passenger Car Association.
The expansion highlights BYD’s growing challenge to Western automakers, even as trade barriers rise.