New Emissions Standards Push Dealers to Sell Old Models Faster
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18 | Monday, June 10, 2019 MOTORINGMotoring CHINA DAILY HONG KONG EDITION Denza brand created by Daimler and BYD targeting NEV market By ZHANG DANDAN [email protected] The unveiling of the Daimler AG and BYD are team- ing up for a joint venture. Shenz- all-new Denza hen Denza New Energy Concept X is another Automotive is a bid to make the Denza brand a success in China’s milestone in the new energy vehicle market. long-term, close and Beijing Mercedes-Benz Sales Service — a subsidiary company friendly cooperation of Daimler — will take charge of between BYD and part of the Denza’s business, including sales, marketing, brand Daimler.” communication and customer Wang Chuanfu, chairman and service, on July 1. That’s according president of BYD to information released by the German auto giant at the 23rd Shenzhen-Hong Kong-Macao combines the technical strength of International Auto Show this both sides and makes positive con- month. tribution to the industry develop- The auto show was held from ment. June 1-9, in Shenzhen, South Chi- “The unveiling of the all-new na’s Guangdong province. Denza Concept X is another mile- Integrating the sales channel of stone in the long-term, close and Denza into Mercedes-Benz will friendly cooperation between BYD Visitors examine cars at the 2019 Shenzhen-Hong Kong-Macao International Auto Show held in Shenzhen, Guangdong province in early allow more customers to access and Daimler.” June. PHOTOS PROVIDED TO CHINA DAILY the Denza brand and its products, The Denza Concept X is a seven- said Nicholas Speeks, president seat sport utility vehicle, set to be and CEO of BMBS. delivered in early 2020. With the support of the Mer- Two variants of the model are cedes-Benz dealer network, the available for customers — the New emissions standards push Denza brand will enrich the choi- plug-in hybrid electric version and ces of new energy models for Chi- the fully electric version with the nese customers and contribute top range on one charge exceeding toward future success, Speeks 500 kilometers. dealers to sell old models faster added. “Styled by Mercedes-Benz, the The move is a follow-up step of Concept X is an organic connec- the two parties’ decision to tion of Denza and Mercedes-Benz, More pressure for sales teams predicted said the authorities should offer a But that was not because of a increase capital for their joint ven- which is stylish and modern,” said three-month grace period to help recovery in market demand but ture in late May. Gorden Wagener, chief design offi- as rules to tighten Chinese auto market sell the older vehicles. mainly the result of dealerships’ On May 17, BYD said that the cer at Daimler AG. Xiao Zhengsan, secretary-general promotional campaigns to sell off company and its joint venture “The Concept X is a perfect of the association, called for carmak- old-standard vehicles. partner Daimler will each example of how we imagine future By LI FUSHENG ships that sell 55 brands of vehi- ers to play their role in ensuring a “Statistically, we had a better increase capital of 150 million Denza products to look like. About [email protected] cles, both Chinese and overseas smooth transition. performance, but that was yuan ($21.71 million) for Shenz- 90 percent of the design of the made, held a similar estimate, “Carmakers should work out a achieved at a heavy cost by the hen Denza New Energy Automo- Denza Concept X will be applied to China’s auto dealers are likely to according to a recent survey by detailed schedule and stop offering dealers,” said Lang. tive. the production vehicle,” Wagener face more pressure in June because the association. old-standard models to dealerships And despite the effort, the figure At the 2019 Shenzhen-Hong added. of weaker demand compounded by Another major source of their in regions that will introduce the was 0.7 of a percentage point higher Kong-Macao auto show, an all- On the first day of the Shenz- the earlier-than-expected adoption pessimism is the adoption of the new emissions standards,” said than the same month last year. new Denza concept car Concept X hen auto show, three new sports of tougher emissions standards in stricter State VI emissions stan- Xiao. The association has not released made its world debut, displaying car models from Mercedes- some regions, according to a leading dards in some 18 provinces and “If they cannot sell off all old-stan- sales of new vehicles in May, but the two joint venture partners’ Benz’s sub-brand Mercedes- industry association. municipalities starting from July, dard models by July, carmakers Lang said they are certain to fall shared vision and ambition for the AMG also hit the market. They The prediction comes on the back one year earlier than the national should take the models back,” he year-on-year. Denza brand in the future, accord- are the Mercedes-AMG GT with of reduced sales growth that has plan. said. “The fall must be above 8 percent ing to the automaker. a suggested price of 1.32 million continued for a period of 10 straight When the new standards are put Starting from July 2018, when the from May 2018. It could even be a “It’s the perfect opportunity to yuan, the Mercedes-AMG GT S of months. in place, models built in accordance first monthly sales dip was spotted, double-digit fall.” introduce the exciting Denza Con- 1.59 million yuan and the Mer- “The demand has remained slug- with State V standards will not be auto dealers have been haunted by Lang said the situation will not cept X. It emphasizes our continu- cedes-AMG GT C of 1.83 million gish for months because of the allowed to be registered. poor sales and unhealthy invento- turn better in June although sales ous commitment to the Denza yuan. overall economic situation. But as Lang said this has prompted ries for 10 months. might grow in some regions, brand and the important Chinese The latest-generation AMG it gets hotter, dealerships are potential customers to adopt a wait- In this year alone, the Vehicle mainly those that have to adopt EV market,” said Hubertus Troska, models are coupled with 4.0-liter expecting fewer customers than in and-see attitude as there are only a Inventory Alert Index, a major bar- the State VI emissions standards member of the board of manage- V8 twin-turbocharged engines May,” said Lang Xuehong, a deputy few models in line with the new ometer of the automotive market, from July. She cautioned that that ment of Daimler AG responsible and AMG SPEEDSHIFT DCT sev- secretary-general of the China standards, thus prompting dealers has been hovering above 50 percent will have a lot to do with the pro- for China. en-speed dual-clutch transmis- Automobile Dealers Association, to offer discounts, further hurting from January to May. motional events instead of real “With our new Denza product, sions, which contribute to the fast last week. their profits. When the market is healthy, the market demand. we are very confident that we’ll performance. “Besides, farmers in northern To make matters worse, as deal- figure, which is compiled based on To make matters worse, auto participate even more in this The new AMG GT C generates a China will soon be busy harvesting ers fight against the clock to cut such factors as stock, market dealers in those regions will not dynamic market.” maximum output of 410 kilo- wheat in June so sales of low-end their inventories, some carmakers demand and dealerships’ finan- have adequate supplies of the Wang Chuanfu, chairman and watts and has a top torque of 680 vehicles will be hurt further,” she are forcing them to take on mod- cial conditions, should be lower new-standard models soon president of BYD, said: “As China’s Newton meters, accelerating said. els produced with the old stan- than 50 percent, said the associa- enough, as many carmakers, espe- first joint venture brand focusing from 0 to 100 km/h in 3.7 sec- Lang is not a lone pessimist in dards instead of new ones, she tion. cially Chinese ones, have not been on new energy vehicles, Denza onds. the world’s largest car market. said. In May, the figure was 54 per- well prepared for the transition, Almost half of some 1,000 dealer- Considering the situation, Lang cent, 7 percent lower than in April. said Lang. Aiways invests in carmaker to guarantee production By ZHANG DANDAN Byton and CHJ Automotive who have used similar tactics. Chinese new energy vehicle start- By its acquisition of Dalian up Aiways is set to acquire part of Huanghai Auto with 1.18 billion Jiangling Holdings’ equity in yuan in 2017, WM Motor got its pro- exchange for investing 1.75 billion duction qualification. Its first pro- yuan ($252.65 million). It is believed duction model, the WM EX5, has by insiders to be a solution to help been on offer since April 20, 2018. the startup get a production qualifi- CHJ Automotive acquired the cation. Chongqing-based automaker Lifan at Changan Automobile — the Jian- the price of 650 million yuan to get the Shenzhen Denza New Energy Automotive unveils its all-new gling Holdings’ parent company — qualification to manufacture vehicles. concept car model Concept X at the 2019 Shenzhen-Hong Kong- disclosed the cooperation between However, insiders have doubts on Macao International Auto Show earlier this month.