KATHMANDU: Chinese electric vehicle (EV) giant BYD is entering Europe’s luxury car market with its premium brand, Denza.
The company is launching the Denza Z9 GT, which comes loaded with the innovative ‘crab walk’ feature, to take on established European luxury brands like BMW and Mercedes-Benz.
Built on BYD’s advanced e3 platform, the Z9 GT is powered by three electric motors-two power the rear wheels and one for the front which can steer independently. This enables the car to perform unique maneuvers, such as lateral parking, making it ideal for navigating tight urban areas.
While the ‘crab walk’ feature has grabbed attention, its practical use remains uncertain with some experts cautioning that it could accelerate tire wear. Chinese tire manufacturers, however, are reportedly developing specialized tires to address this concern.
Denza is targeting younger, tech-savvy buyers who prioritize the latest technology over established legacy brands. The Z9 GT, which is designed by a former Audi and Lamborghini designer, boasts premium features, such as advanced sound systems and cutting-edge entertainment technology, which outshine European competitors. The car’s lower price gives Denza a significant edge over its rivals.
To further strengthen its market position, BYD plans to manufacture Denza vehicles in Hungary and Turkey. This will help the company avoid import taxes and keep prices low.
Crowded Market
Despite its promising features, Denza faces significant hurdles in Europe. Established brands like BMW, Mercedes-Benz and Audi enjoy strong customer loyalty. Additionally, many European consumers still perceive Chinese automakers as inferior, despite BYD’s huge strides in innovation and reliability in recent years.
The European luxury EV market is also very crowded, with brands like Tesla, Porsche and Audi already enjoying a strong foothold. Fellow Chinese brands, Xiaomi and Huawei, are also adding pressure. Furthermore, Europe’s recent tariffs on Chinese EVs, which can go up to 37.6%, could further complicate Denza’s pricing strategy until local production scales up.
Cashing in on Tesla’s Decline
Tesla’s European sales have plummeted by 49% in early 2025, opening doors for its competitors. Volkswagen has emerged as the region’s top EV seller, with a 180% sales jump in February. A wide range of products – from affordable models to premium Audis—and local manufacturing have helped the company stay competitive.
BMW is also a strong player in the segment, while Mercedes-Benz continues to attract affluent buyers. Stellantis, the parent company of Peugeot, Citroën and Fiat, on the other hand, dominates the budget EV segment, while Renault holds a strong position in France.
Denza has the potential to capture 5–10% of the luxury EV market in the coming years by appealing to tech-savvy buyers seeking value-driven luxury, say industry experts. But it won’t be easy for BYD to take on long-established brands.
With Volkswagen leading the luxury space, and Stellantis excelling in the affordable EV space, Denza has a long road ahead in Europe.
