Denza aims to compete with Audi, BMW, and Mercedes-Benz in Europe and reveals its ambitious goal of capturing 80% of the premium market.

Denza's entry into Europe represents one of BYD's most ambitious moves to capture the premium automotive market. The Chinese company aims to establish itself in a segment historically dominated by manufacturers such as BMW, Mercedes-Benz, and Audi, relying on design, electrification, and the development of new technologies.

During a meeting held in Abu Dhabi, Híbridos y Eléctricos interviewed Daniel Cabanillas, Denza's European product manager, to learn about the company's plans, business objectives, and the role of upcoming models. The executive stated that the brand aspires to cover approximately 80% of the premium market with its future lineup, though he acknowledged that growth must be gradual to preserve the residual value of its vehicles.

A brand with big ambitions in Europe

Question. First, what is your role at Denza and what part do you play in its development in Europe?

Answer. First of all, welcome to Abu Dhabi, to Denza, and to the BYD group. My name is Daniel Cabanillas, and I work as the product manager for Denza Europe.

Q. Denza has just started its European journey, and we’ve already seen several of its vehicles. What are the company’s main expansion plans, and what can we expect from the brand in the coming years?

R. As you can see, Denza’s plans are quite ambitious. We launched the brand in Europe in April of this year, and over these months, we have introduced four vehicles.

But our strategy isn’t just about launching cars; it’s also about introducing new technologies. We’ve introduced our Flash Charging system, which represents a revolution. We are developing an ecosystem that includes the vehicles themselves and the charging infrastructure. We already have four models launched, along with a new technology for which we have very high expectations.

P. The BYD group has three brands: BYD, Denza, and Yangwang. How does Denza differ from the other two, especially from BYD?

R. The brand structure within the group is quite clear. BYD is our brand aimed at democratizing technology. Denza targets the premium segment. We always say it’s not luxury, but rather Denza is aimed at the premium market.

Above that is Yangwang, which positions itself in the upper luxury segment. It’s not currently available in Europe or Spain, but it’s part of our structure. Thus, we have a clear differentiation among the three brands.

P. Denza enters a market where BMW, Mercedes-Benz, and Audi have been established for decades. What arguments can a new brand offer to compete with such prestigious manufacturers?

R. We rely on two very important pillars. The first is design, because it’s always a decisive factor in purchasing decisions. If you don’t like a car, you won’t keep looking at it. But above all, we focus on technology. That’s where we differentiate ourselves.

We don’t have a brand history like European companies that have been around for a hundred years or possess long histories, but we make up for that difference with highly innovative technology. As you know, we have 120,000 engineers in the group, and we file more than 50 patents per working day. We are a technology-driven group that allows us to introduce innovations to the market and stand out from the rest.

P. Besides design and technology, are there any other aspects you consider particularly important to distinguish Denza from its competitors?

R. Technology is a very broad concept. We have charging technology, develop our own batteries, and work on all the innovations we incorporate into our vehicles. Ultimately, that’s what will set us apart.

P. BYD has experienced significant growth in Spain since its arrival. Will Denza follow a similar business strategy, or as a premium brand, will it pursue a more selective approach?

R. It’s not that Denza is a niche brand, but the premium segment operates differently. We have to take it step by step, build momentum, and we can’t bring more cars to the market than there is demand for. After all, the residual value of cars is a very important factor that greatly affects the business. So yes, we have ambitions, but we want to move forward gradually and safely.

P. What is the customer profile Denza targets? Are you aiming to attract traditional premium car buyers or those more interested in new technologies?

R. We target both traditional premium customers and those who place a high value on design and technology. We also seek customers willing to explore something that isn’t currently available on the market. Therefore, we see different segments within the premium market, and so far the response has been very positive.

P. Regarding upcoming releases, can you tell us which models will arrive in Europe? What role will sports vehicles play in the future lineup?

R. I can’t go into too much detail about the cars we’re bringing. What I can say is that our ambition is to cover around 80% of the premium market. We want to be present in many segments.

P. So far we’ve mainly heard about Denza’s focus on electric vehicles. Will we also see plug-in hybrid vehicles in the European range?

R. Everything we have is either 100% electric or plug-in hybrid.

P. Denza is also focusing on high-performance vehicles and sports models. Are you considering future participation in racing competitions as part of the brand’s development?

R. We have vehicles that are clearly supercars, such as our Denza Z, and we cover many different segments. Entering motorsport is something we haven’t confirmed at this time. But the BYD group has a clear commitment to innovation and expanding into new areas. I’m not saying we will do it, but I think no one would set limits on us.