Byd Company Limited(002594) Automotive Industry Co., Ltd. (hereinafter referred to as ” Byd Company Limited(002594) “) and its German partner Daimler Greater China Investment Co., Ltd. (hereinafter referred to as “Daimler”) signed an equity transfer agreement on adjusting the structure of its joint venture Shenzhen Tengshi New Energy Vehicle Co., Ltd. (hereinafter referred to as “Tengshi”) to complete the equity transfer of both parties in Tengshi.
Byd Company Limited(002594) and Daimler will adjust the equity of Tengshi in the future. After the equity adjustment, Daimler and Byd Company Limited(002594) will hold 10% and 90% of Tengshi respectively. The equity transfer agreement is planned to be completed in mid-2022 after being approved by the regulatory authorities.
After completing the holding of Tengshi, Byd Company Limited(002594) will give greater operational support to Tengshi to promote its success in the future. Meanwhile, Daimler will continue to support the sustainable development of Tengshi as a shareholder, Byd Company Limited(002594) and Daimler will continue to promote the successful long-term partnership between the two sides.
This is a tripartite win-win equity transfer plan. With the blessing of Byd Company Limited(002594) , Tengshi is expected to usher in new development opportunities. Tengshi brand will launch new models in the Chinese market in 2022 to further explore the market. Tengshi brand operation team will ensure continuous provision of relevant services to existing customers.
Byd Company Limited(002594) the holding of Tengshi will further promote the improvement of brands and products and move towards a new stage of high-quality development.
ten year joint venture opens a new chapter
Tengshi was established on February 16, 2011 with a registered capital of 5.76 billion yuan. It was jointly funded by Byd Company Limited(002594) automobile industry and Daimler in a 50:50 equity structure. The main business includes the design and R & D of passenger cars, electric vehicles, automotive electric transmission systems, vehicle power systems and passenger car parts with less than 9 seats.
As China’s first new energy vehicle technology joint venture, Tengshi was highly expected due to the strong background of both shareholders.
“As a child of Daimler and Byd Company Limited(002594) , Tengshi is a brand born on the shoulders of giants.” Byd Company Limited(002594) chairman Wang Chuanfu once said publicly.
Tengshi is positioned to build China’s medium and high-end new energy vehicles. Byd Company Limited(002594) provides it with three electricity technology, and Daimler is responsible for vehicle manufacturing; In 2014, Tengshi 300, the first mass production vehicle developed on the basis of Mercedes Benz B200 platform, went on sale, and then the replacement models Tengshi 400 and Tengshi 500 were launched successively; In November 2019, Tengshi was officially incorporated into Mercedes Benz’s sales system, and Tengshi X was officially listed after bid change.
By jointly promoting the business development of Tengshi brand, Byd Company Limited(002594) and Daimler have gained valuable experience in China, the world’s largest and fastest-growing high-end new energy vehicle market, and better understood the needs of customers.
The birth of Tengshi has created an industry precedent for the “export” of Chinese brand cars to the technology of the joint venture.
In the past 30 years of joint venture and cooperation between Chinese and foreign automobile enterprises, the main mode is that the foreign party provides products and the Chinese party is responsible for production. However, the product technology of Tengshi brand, especially the core three electric technology, mainly comes from Byd Company Limited(002594) . On the one hand, it proves the technical leadership of China’s electric vehicles, on the other hand, it also improves the brand strength of China’s automobile enterprises.
The main support behind this comes from the core technology advantages accumulated by Byd Company Limited(002594) over the years.
As China’s first auto enterprise to deploy new energy vehicles, Byd Company Limited(002594) the sales volume of new energy vehicles in the first November of this year has exceeded 500000, which will win the first place of the year again without suspense. At the same time, Byd Company Limited(002594) continues to lead the industry through leading technology, and successively introduces core technologies such as blade battery, DM-I super hybrid and E platform 3.0 to promote the high-quality development of the industry.
After the equity transfer, as the controlling shareholder of Tengshi, Byd Company Limited(002594) will devote more resources to continue to promote the product and technology application of Tengshi brand, further enhance the market competitiveness of Tengshi brand and create a new chapter of Sino foreign joint venture cooperation.
continue to promote the brand upward
As a leading brand of new energy vehicles in China’s market, since this year, Byd Company Limited(002594) has entered the fast lane of development under the background of increasing market penetration of new energy vehicles.
It broke 30000 in May, 40000 in June, 50000 in July, 60000 in August, 70000 in September, 80000 in October and 90000 in November… Byd Company Limited(002594) constantly refresh the industry records.
The development potential of Byd Company Limited(002594) is also favored by the capital market. The share price of Byd Company Limited(002594) soared all the way, becoming the first in the market value of Chinese auto enterprises, with a market value of more than 900 billion yuan at one time.
In the era of great changes in the automotive industry, the new energy vehicle market is changing rapidly. Byd Company Limited(002594) it is clear that leading technology, accurate strategy and rapid decision-making are indispensable to continue the first mover advantage of new energy vehicles.
With the transition of the new energy vehicle market from the era of subsidies to the stage of market-oriented competition, the scale of the market will be further expanded. In order to further gain a foothold and become a global leading enterprise, Byd Company Limited(002594) began to take the initiative to carry out in-depth strategic layout of technology, brand and products, and continuously promote the brand upward.
In the process of promoting the brand upward, Tengshi brand undoubtedly plays a vital role in the medium and high-end market of 300000 yuan. With the technical strength of Byd Company Limited(002594) and the continued support of Mercedes Benz’s luxury brand operation, Tengshi is expected to achieve a leap in quantity and quality with the introduction of new products in the future.
In addition, the joint venture and cooperation with Mercedes Benz will also provide valuable experience for Byd Company Limited(002594) seeking the overseas layout of new energy passenger vehicles.
It is worth mentioning that in 2022, Byd Company Limited(002594) will launch an unprecedented high-end brand with a price range of more than 500000-1 million yuan. It is new and independent in terms of brand, products, sales service network and operation team. The first model is a hardline off-road vehicle. It is reported that in the future, Byd Company Limited(002594) automobile business will be composed of four sections: Wang Chaowang, ocean.com, Tengshi and high-end brands.
From ocean series to Dynasty series, from Tengshi to high-end brands, Byd Company Limited(002594) new energy vehicle kingdom will further expand its capacity, face to face with foreign vehicle enterprises, create an era of intelligent new energy vehicles, and truly realize the dream of “changing lanes and running first” of Chinese vehicles from a new situation of winning with “technology”.
(21st Century Business Herald)
