Chinese Automaker BYD Launches Luxury Brand Denza in Europe: Tesla Gets a New Competitor

Chinese electric vehicle giant BYD (Build Your Dreams) is expanding its European footprint with the launch of its luxury-oriented car brand, Denza. The announcement was made during Brera Design Week in Milan, where BYD unveiled its first European model: the Z9GT – a spacious and sporty station wagon available as a fully electric version and a plug-in hybrid. The model is scheduled for release in Europe in the fourth quarter of 2025.

Already one of the world’s largest EV manufacturers, BYD has established a presence in Europe with several models. With Denza, however, the company is targeting a more exclusive customer base. The Z9GT will be the first model introduced on the continent, followed later by the seven-seater MPV model D9.

Denza – A Luxury Brand from BYD

Denza was originally founded as a joint venture between BYD and Daimler (now Mercedes-Benz Group) in 2010. It was revitalized in 2021 when Daimler reduced its stake to just 10%. The brand has seen considerable success in its home market of China, where it’s widely viewed as a premium alternative to both Western and domestic luxury brands.

Now, BYD is setting its sights on the fast-growing European EV market. Denza’s launch in Europe comes despite ongoing geopolitical tensions between the EU and China. The EU has imposed a 17% tariff on BYD’s electric vehicles in response to alleged unfair subsidies from the Chinese government. Nevertheless, BYD remains determined to expand its European presence.

“We are thrilled to introduce Denza to European customers,” said Stella Li, Executive Vice President of BYD, at the model reveal in Milan.

A Strong Growth Trajectory

BYD has already enjoyed major success in its home market, recently surpassing Tesla in EV sales. In Q1 2025 alone, BYD sold over 206,000 vehicles internationally, a more than 100% increase compared to the previous year. In total, BYD sold nearly 1 million electric and hybrid vehicles in the first three months of the year, including more than 400,000 fully electric cars.

With this momentum and the expansion of the Denza brand, BYD is now ready to compete for market share in the European EV space – an arena increasingly dominated by Tesla, Volkswagen, and BMW.

Our team may have used AI to assist in the creation of this content, which has been reviewed by our editors.