BYD’s EV tech in the spotlight as it challenges Porsche’s 911

Chinese electric vehicle (EV) assembler BYD has set its sights on Porsche’s supercars with plans to sell its Denza-branded new models in developed markets, the latest sign of its increasing heft in designing and manufacturing premium vehicles. The Shenzhen-based carmaker planned to unveil the Denza Z sports car featuring BYD’s self-developed intelligent DiSus body control ­system at the UK’s Goodwood Festival of Speed on Thursday, it announced in a statement. The European debut of the sports car, which aims to take on Porsche’s 911, is part of BYD’s efforts to spur sales outside mainland China by launching more models and expanding its distribution network. “A vehicle to lure international consumers away from global marques like Porsche can help BYD convince more overseas drivers of its quality and reliability,” said Eric Han, a senior ­manager at Shanghai consultancy Suolei. “The energy crisis due to the war in Iran is providing Chinese EV makers with a catalyst for international expansion.” BYD claims its DiSus system can keep passengers firmly in place during high-speed ­cornering and prevents the ­vehicle from rolling over. The two-door Denza Z is fitted with BYD’s blade battery packs, which are arranged in an array to increase energy density and resistance to overheating. BYD has yet to announce prices for the three Denza Z variants, while the Porsche 911 starts at about US$140,000. Denza was established as a 50-50 venture in 2011 by BYD and Mercedes-Benz Group before the Chinese EV king raised its holding to 90 per cent in 2022, after buying a 40 per cent share from the German marque. Two years later, BYD took full control of the premium EV brand by acquiring the remaining 10 per cent stake from Mercedes-Benz. BYD, known for its battery-powered cars priced around 100,000 yuan (US$14,719), has been moving up the value chain over the past five years after designing and assembling a clutch of expensive electric models under its new brands Yangwang and Denza. Buoyed by their production and technological advantages in EV, Chinese automotive groups led by BYD were expected to export a total of 10 million units this year, up 41 per cent from 2025, global consultancy AlixPartners predicted last week. On the mainland, their sales could fall by 10 per cent year on year to 24.6 million vehicles, it added. Even after accounting for tariffs and shipping costs, Chinese EV assemblers still generated higher profitability in the European market, according to Nick Lai, head of auto research in Asia-Pacific at JPMorgan. Chinese carmakers’ average net profit margin per vehicle stood at about 5,000 yuan, but it could rise as much as fourfold in overseas markets, where Chinese cars were sold at higher prices, he said in May.