Shanghai (Gasgoo)- BYD Company Limited announced on February 1 that its board of directors agreed a proposal that allows BYD Auto Industry Company Limited, its wholly-owned subsidiary, to inject an additional RMB 200 million as registered capital into Shenzhen DENZA New Energy Automotive Co., Ltd. (DENZA), a joint venture in partnership with Daimler.
BYD Auto Industry Company Limited's equity in DENZA will remain at 50% after the capital increase completes.
The BYD's subsidiary had added RMB500 million in DENZA as early as May, 2017, which was mainly used as operational capital for the joint venture in order to alleviated the pressure of extended cycle to receive subsidy over the DENZA's business operation caused by the adjustment of national new energy vehicle (NEV) subsidy policy. The latest capital increase signals BYD's confidence in the NEV joint venture promising development.
On March 26, 2018, Daimler and BYD Auto Industry Company Limited launched the new DENZA 500 battery electric vehicle from DENZA. Engineered and produced in and for China, the new DENZA 500 offers Chinese customers a comprehensive upgrade through a refreshed exterior design and extended electric range.
In addition, BYD said in last May that the company and Daimler Greater China Ltd. would respectively pour an investment of RMB 400 million into DENZA to improve the joint venture's asset-liability ratio and expand the sales network.
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