Denza's "Seven-Year Itch", need persistence, and yet more changing

Speaking of NEV brands, now consumers can name several brands casually. But who is the first NEV brand in the real sense in China? I believe most people don't know the answer to this question. In fact, before the "purchase restriction policy" of automobiles was introduced at the end of 2010, the brand had emerged. It was Denza.

From the debut of the Denza concept car in 2012 to the official release of the production version of the Denza X at the Guangzhou Auto Show, only when Denza is really raised as an own child can the previous difficulties be resolved.

On March 1, 2010, BYD and Daimler signed a memorandum of understanding in Stuttgart. On May 27 of the same year, the two parties signed a contract to establish Shenzhen BYD Daimler New Technology Co., Ltd. in China. Two years later, in 2012, at the Beijing Auto Show, the Denza concept car was officially unveiled. In April 2014, Denza's first pure electric model was officially unveiled and officially launched for sale in September of that year.

In the four years since its launch, Denza has been improving itself in response to the issue of "endurance anxiety" that consumers are most concerned about. The Denza electric vehicle has increased its cruising range from 300 kilometers to 400 kilometers, and now to 500 kilometers. For the issue of the crash safety of electric vehicles, Denza produced the first C-NCAP collision 5-star electric vehicle according to the test standards of fuel vehicles (July 2014). Denza is the first brand in China to test the ice and snow performance of electric vehicles (February 2017). For the issue of driving experience of electric vehicles in the plateau area, Denza is also the first brand to do product test in the Qinghai Tibet Plateau (April 2018).

The aforementioned "firsts" are not what Denza needs for product marketing, but rather answers to many questions that consumers have doubts about. According to common sense, Denza, who has been continuously polishing the product technology, should get "full pots" of sales performance, but this is not the case.

From 1990 to around 2010, the attitude of most consumers to cars has gradually shifted from treating them as daily consumables to understanding of mainstream car brands and understanding and chasing of the fun of driving a vehicle. The process of change of ideas is only about 20 years. The entry of NEV, represented by electric vehicles, is bound to undergo the severe test of the market. The responsibilities of science popularization of electric vehicle knowledge, recognition of product power, and early accumulation of word of mouth naturally fall on the NEV pioneers represented by Denza.

It is an objective fact that the sales volume of any new product in the initial stage of the market is less than the sales volume of mature products. Denza went on sale in September 2014. It sold 2,800 units in 2015 and 2,287 units in 2016. In 2017, Denza had the highest sales volume, with a total of 4,713 units sold. With the support of relevant policies for new energy vehicles, the emerging car manufacturers featuring new topics, new designs, and new technologies brought the market fresh blood, and also bigger challenges to Denza. In fact, Denza's fatal problem is that it cannot keep up with the aesthetic design of the times, so naturally there is not enough market attention and good sales.

Denza's Sales Data (2017 – 2019)

Persistence is a necessary and sufficient condition for the survival and development of the Denza brand, but it is not the only one.

If Denza relied more on BYD and Daimler before, then Denza has to rely on its own ability to continue the brand value. It must and can only do so.

At the 2019 Guangzhou Auto Show, the new Denza X met with consumers and its price was announced. The price of PHEV version ranges from 298,800 yuan to 319,800 yuan, and that of BEV version ranges from 319,800 yuan to 357,800 yuan. Leaving aside the price of the new car, for the Denza brand alone, creating a brand new look is a challenge for designers.

BEV version (left), PHEV version (right)

Denza X breaks the constraints of straight lines and adopts a full and round front design.

The rear uses a special "X" logo design, winding LED strips and blackened tail lights. The design of the entire rear echoes the front.

The interior of the Denza X is full of Mercedes-Benz elements.

An immersive interior design similar to an aircraft cockpit is in line with current aesthetic trends. The 12.3-inch full LCD dashboard and the 15.6-inch "floating" rotatable HD touch screen both enable Denza X to follow the design trend of NEV. Its design that combines functionality, aesthetics, and luxurious texture meets young consumers preferences.

The logo of the Denza X has also changed. From the former blue to the current gray, the size of the front logo is also consistent with that of Mercedes-Benz products, highlighting its connection with Mercedes-Benz.

The Denza X is a 7-seater SUV. The rear seats can be adjusted forward and backward and folded. Among the existing NEV SUVs, 7-seater products are rare. Denza X's move combines design aesthetics and practicality.

In this era where both connotation and appearance are more important, Denza X's mass-produced cars use curves and surfaces to replace the straight lines and edges in traditional car design, making it more than 90% similar to the concept car and more in line with the current Mercedes-Benz product design trends. Denza X, which started from a design perspective, can be said to be the first and most important step to return to the "right way."

The Denza X's PHEV and BEV versions are unified in overall style, but there are obvious differences in characteristics.

Summary:

Over the past 7 years from the debut of the Denza concept car in 2012 to the release of the production version of the Denza X at this Guangzhou Auto Show, Denza's development can be summarized as ups and downs. On July 1, 2019, Beijing Mercedes-Benz Sales Service Co., Ltd. officially took charge of some of Denza's businesses, including sales, marketing and brand communications, customer service, and network development. This is the most important part influencing Denza's own development besides "beautiful face". Only when Denza is really nurtured as his own child, the difficulties that existed before can be solved. At present, the appearance, connotation and stage are basically in place, and the rest is competitiveness in the severe market competition. As for the result, only time is left to test.