Chinese electric vehicle giant BYD, backed by Warren Buffett’s Berkshire Hathaway, is set to make a bold move in the luxury EV market with the unveiling of its premium brand’s first sedan at the Beijing auto show. The Denza Z9GT will join Denza’s N7 and N8 SUVs and D9 multipurpose vehicles, all of which have seen increasing sales, contributing to BYD’s dominance in the EV market.
The luxury vehicle will enter a saturated domestic market amid a price war, but BYD believes that its focus on technology will set it apart from traditional luxury brands. The company has been focusing on making EVs more affordable than their gasoline counterparts, and it recently unveiled its most expensive vehicle to date, a fully electric supercar valued at $233,450.
BYD’s success is crucial to its goal of competing with global leaders like Toyota and Volkswagen and shedding its image as a low-cost automaker. The luxury push is also necessary to increase profitability as the price war squeezes the margins of mainstream models. Denza’s D9 has become the group’s most profitable model with annual sales of 119,000 units.
Earlier this year, BYD predicted a significant shift in the new energy vehicle (NEV) landscape. The company has been focusing on making EVs more affordable than their gasoline counterparts. Recently, BYD unveiled its most expensive vehicle to date, a fully electric supercar valued at $233,450, challenging traditional supercar manufacturers like Ferrari NV and Lamborghini. The company also announced its first electric pickup truck, the BYD Shark.
In 2008, Berkshire invested around $230 million in BYD, obtaining 225 million shares and a 20.49% stake in Class H shares. Over time, it has reduced its stake and now holds approximately 87.6 million BYD H Shares, equivalent to a 7.98% stake.
