The Chinese automotive giant BYD has already surpassed Tesla in electric vehicle sales, and now it is turning its attention to the luxury sports car segment.
BYD unveiled the Denza Z model on Wednesday, a spectacular vehicle in an intense blue shade, signaling the company’s ambitions to compete with top Western brands such as Porsche and Mercedes-Benz, writes CNN.
The launch took place at the opening of Auto Shanghai, the largest auto show in China, which attracted dozens of domestic and international auto manufacturers. The event, spanning over ten days, highlights the technological advancement of the Chinese electric vehicle sector.
Cutting-Edge Technology and Luxury
The Denza Z model was highly anticipated after images of the prototype were leaked online earlier this year, and an official from the company confirmed that the car would be "fully equipped with technology and luxury."
Initially a joint venture with Mercedes, Denza is now wholly owned by BYD, and the brand was launched in Europe at the beginning of April.
While BYD's main brand is known for affordable electric and hybrid vehicles, the Denza line showcases the company's ambition to expand its portfolio and target new market segments, analysts say.
"BYD only knows how to attack. Their frequent and consistent model and feature launches keep rivals on the defensive, and their cost structure—the lowest in the class—allows them to set much more aggressive prices," said Tu Le, founder of the consulting firm Sino Auto Insights, to CNN.
The Denza launch comes at a vulnerable time for Porsche, which has failed to halt the decline in sales in China. In its 2024 annual report, the German manufacturer reported a 28% decrease compared to 2023, due to "difficult economic conditions."
The Price of Denza Z Has Not Been Communicated Yet
CNN contacted BYD for information regarding the price of the Denza Z model, but the company has not disclosed the details at this time.
Last month, the luxury Denza N9 SUV was put on sale at a starting price of 389,800 yuan ($53,453). In comparison, the Song Plus SUV from BYD, a simpler model, starts at around $18,500.
BYD also sells luxury models under the Yangwang brand, in the premium segment of 1 million yuan ($137,000), which recently surpassed the symbolic threshold of 10,000 units sold. The latest model, the U8L SUV, was launched on Wednesday at Auto Shanghai.
BYD Continues Its Rise
The new launches come in an already exceptional year for the company from Shenzhen. China's largest automaker, BYD, aims to double its sales outside China to over 800,000 units by 2025.
The company intends to maintain its competitive advantage by assembling vehicles in local markets, its president stated in an investor call last month, according to Reuters.
Last year, the European Union imposed high tariffs on electric vehicle imports from China, citing unfair subsidies. A 100% customs duty imposed by the former Biden administration effectively blocked Chinese firms' access to the US market—just before trade tensions escalated.
2025 has already brought numerous successes for the company, which accounted for approximately a third of electrified vehicle sales in China last year.
BYD reported a 60% increase in sales in the first quarter of this year, with over a million new vehicles sold—including electric, hybrid, and commercial models, according to a CNN calculation based on the latest stock reports.
The company had revenues of $107 billion in 2024, a 29% increase over the previous year, based on deliveries of 4.27 million cars, including hybrids. In comparison, Tesla's revenues were $97.7 billion, with 1.79 million vehicles delivered. Tesla's annual deliveries decreased by 1.1% last year.
Tesla holds a 6.1% market share in China, according to the China Association of Automobile Manufacturers. BYD produces both battery electric and hybrid vehicles, while Tesla exclusively produces fully electric models.
With 1.76 million electric vehicles delivered, BYD was very close to Tesla.
Tesla reported a larger-than-expected quarterly revenue decline on Tuesday due to trade tensions fueled by Trump and negative consumer reaction to CEO Elon Musk's role in the administration. Total sales decreased by 9%, with the core business—car sales—falling by 20%. Net profit dropped by 71% compared to last year.