BYD’s shot! Fully-owned Tengshi Automobile

Transferred from: shanghai securities news China Securities Network

　　SSE China Securities Network News (Reporter Li Lingxi)There are new moves. According to enterprise investigation, several changes have taken place in Shenzhen Tengshi New Energy Automobile Co., Ltd. (hereinafter referred to as Tengshi Automobile): the shareholding ratio of BYD Automobile Industry Co., Ltd. rose from 90% to 100%, Mercedes-Benz (China) Investment Co., Ltd., which originally held 10% of the shares, withdrew, and its former director Hans Georg Engel withdrew.

　　At the same time, Tengshi Automobile officially changed from a "foreign-funded company" to a "company", and its market subject type changed from the original "Sino-foreign joint venture" to "sole proprietorship". This also means that Tengshi Automobile has officially become a wholly-owned brand of BYD.

　　The reporter learned that in addition to the wholly-owned holding of Tengshi, it is not excluded that BYD will cooperate with Mercedes-Benz again in other sectors. In the future, the two sides may explore other cooperation opportunities in the field of new energy vehicles.

"A key link between the preceding and the following"

　　According to the data, Tengshi brand was first founded by BYD and Mercedes-Benz in 2010. At that time, both parties held 50% shares to establish a joint venture company.

　　In August this year, at the 2024 Tengshi Automotive Technology Day and Tengshi Z9GT Pre-sale Conference, Wang Chuanfu, Chairman and President of BYD Group, said that Tengshi was the first brand in China with equal equity and equal technology, and its brand name was shared by shareholders.

　　However, due to factors such as insufficient brand awareness and channel mismatch at that time, Tengshi’s development was not smooth for a long time after its establishment. Wang Chuanfu revealed that by the end of 2021, Tengshi had lost nearly 5 billion yuan in eight years.

　　In December, 2021, BYD’s shareholding in Tengshi increased from 50% to 90%, and thus launched a comprehensive renovation of Tengshi technology and products and the reform of independent operation of channels.

　　In May 2022, Tengshi launched the first luxury MPV Tengshi D9. It is reported that since its listing, Tengshi D9 has been the champion of MPV market sales for two consecutive years. In September this year, the delivery of the 200,000th Tengshi D9 was completed, and Tengshi D9 officially became the new energy luxury MPV with the fastest sales volume of 200,000.

　　In addition, BYD officially released Tengshi’s brand-new exclusive technology "Easy Tripartite" in August this year, and Tengshi Z9GT was unveiled as the world’s first model. According to Tengshi Automobile, since Tengshi Z9GT and Tengshi Z9 officially opened for pre-sale on August 20th, the average daily order volume has exceeded 1,500 vehicles.

　　In Wang Chuanfu’s view, today’s Tengshi has become a key link in BYD’s brand matrix, which has inherited the dynasty, ocean and equation leopard down and raised its hopes up.

　　The data shows that from January to August this year, Tengshi Automobile sold a total of 79,894 vehicles.

Speed up the layout of luxury brand market

　　At the 2024 Tengshi Automobile Technology Day and Tengshi Z9GT Pre-sale Conference, Wang Chuanfu expressed his optimism about China automobile brands entering the luxury car market.

　　He believes that the explosive growth of new energy vehicles has given China luxury brands a golden opportunity for development. At present, new energy vehicles have become the main force to expand the luxury market, and the penetration rate of China brand in the luxury market is accelerating.

　　Wang Chuanfu also talked about it, despite China.Automobile brand momentum is fierce in the domestic luxury market, but it is still far from enough to look at the global market.

　　In recent years, BYD has continuously improved its layout in the luxury brand market. In February this year, BYD’s high-end brand Wangwang launched its second model, Wangwang U9, with a price of 1.68 million yuan. On August 16th, the first delivery car for U9 customers was officially launched.

　　For Tengshi, in addition to creating its own technical "moat", BYD has also accelerated the pace of channel construction of the brand. This year, Tengshi fully opened its doors to attract investment and joined in, and adopted the channel strategy of "direct sales+dealer partners" to further accelerate the expansion of channel layout.

　　This time, BYD will take the last 10% equity of Tengshi Automobile held by Mercedes-Benz, which will undoubtedly open a new page for the development of Tengshi brand.

　　Some analysts believe that Tengshi, as a luxury brand owned by BYD, its product positioning is highly compatible with market demand. After BYD’s wholly-owned Tengshi, it can further concentrate superior resources and launch more high-quality models that meet the needs of consumers, thus enhancing the competitiveness and market position of Tengshi brand in the increasingly fierce competition environment of new energy automobile market.