We have exclusively learned that Denza has set an ambitious sales target of over 300,000 units for 2025, more than doubling last year's actual sales figure.

This year is crucial for Denza to deliver results, as its new vehicles gradually transition to the exclusive Yisanfang platform. Alongside the well-performing Z9 twins, the flagship SUV model N9 will launch in the first quarter, and the revamped N8 will also switch to the new platform and be introduced this year.

By Lu Yanbo

Edited by Mao Shiyang

Original content by Auto Pixel (ID: autopix)

01.

Denza Swiftly Embraces 'Yisanfang'

Achieving success in the high-end market is a core objective for BYD this year. Among its several high-end brands, Denza shoulders a heavier burden than Thunder Power.

Insiders have revealed that Denza's sales target for 2025 exceeds 300,000 units. In 2024, Denza sold 126,000 units, and this year's target is more than double that number.

2024 was a challenging year for Denza. Early last year, Zhao Changjiang announced a target of 200,000 units for 2024, which ultimately fell short by a few thousand units compared to 2023.

While this sparked considerable discussion outside the company, a Denza executive informed us that internally, the 2024 target was significantly lowered last year, and the final sales figure of 126,000 units exceeded the revised target.

The three main sales vehicles last year, Denza D9, N7, and N8, were based on BYD's e-platform, a critical stage for the brand to lay foundations. This year will be different as Denza's exclusive Yisanfang platform vehicles are gradually being developed and completed, and Denza must perform well.

Denza's new products are accelerating their transition to the exclusive Yisanfang platform. We have exclusively learned that the new Denza N8 will switch to the Yisanfang platform, with mass production expected in the middle of this year and a launch in the second half.

Before the N8, the flagship vehicle will debut first. In late September and mid-November of last year, Denza launched the coupe-style Z9GT and sedan Z9, respectively, marking the first vehicles from the Yisanfang platform.

▍The Premiere Yisanfang Vehicle: Denza Z9GT

At the beginning of January, Zhao Changjiang, General Manager of Denza Sales, revealed that the flagship SUV model N9 will launch in the first quarter of this year. N9 is the third new vehicle from the Yisanfang platform. An executive close to Denza informed us that while there are still some issues being resolved with N9, there should be no major hurdles for mass production and on-schedule launch this time.

Compared to the positioning of the three e-platform Denza models, the Yisanfang models may have a higher market stance. The pricing of the already launched Z9 twins ranges from approximately RMB 330,000 to RMB 410,000, and the SUV flagship N9 is expected to command an even higher price.

However, the sales ramp-up of the Z9GT has been faster than anticipated. Starting from October last year, monthly sales exceeded 3,000 units for three consecutive months. The Z9GT, priced over RMB 100,000 higher, sold more in just over three months than the entire year's sales of the previous N7 model.

Following the launch of the two flagship models Z9 and N9, Denza will begin deploying volume models from the Yisanfang platform. In the SUV lineup alone, the new N8 will launch in the second half of this year, and the new N7 is expected to follow next year. The old N7 only had an electric version, and the old N8 only had a hybrid version. After being updated to the new platform, both models will simultaneously offer EV and DM versions.

From an external perspective, Denza's N9, 8, and 7 models will compete directly with Lixiang's L9, 8, and 7, as well as AITO's M9, 8, and 7.

Building on the new platform, Denza's products will undergo a complete redesign, including the new energy MPV segment where the D9 resides. These new products will showcase a more prominent Denza brand identity.

02.

A More Cautious Approach to Premium Vehicles

Using the same platform and common components is a common strategy for automakers producing premium vehicles, such as Audi and Volkswagen sharing platforms, and Lexus and Toyota doing the same. This was also BYD's initial approach.

After 'relaunching' Denza, BYD introduced three products: Denza D9, N7, and N8. All three vehicles were developed on the e-platform and shared the same platform as BYD's Dynasty and Ocean series. However, only the D9 performed well, with a total of 220,000 units sold over the past two years. The N7 sold only 11,000 units last year, with monthly sales often in the hundreds.

The N8 fared even worse. After its launch, monthly sales remained in the hundreds, and throughout 2024, the N8 contributed less than 1% to Denza's overall sales. Starting in September last year, rumors of the N8 being discontinued began to circulate. The strategy of sharing the same platform limited Denza. The N8 shared most of its powertrain with the Tang DM, and the market did not receive this well, considering there was also a certain degree of similarity in appearance between the two models.

In 2023, Denza sold approximately 128,000 units, of which the new energy MPV Denza D9 accounted for 119,000 units. Subsequently, Denza introduced two models in the mainstream pure electric SUV market, the N7 and N8. Denza's original target of 200,000 units was based on the expectation that these two new models would bring incremental sales.

▍Denza N9

This platform-sharing strategy did not favor Denza in establishing its own brand identity. Unlike Volkswagen and Audi in the fuel vehicle era, in the new energy vehicle era, manufacturing and performance are no longer thresholds. Brand identity must be more distinct, and product differentiation must be greater, especially in the premium vehicle market.

Now, the 'dividend period' of Denza's e-platform products is nearing its end. The success of the Denza D9 lies in its pioneering of the home-use new energy MPV segment, but within this market, new players, state-owned enterprises, and even joint venture automakers are entering, and competitors have already launched numerous products. Competitors have adopted a cost-effective strategy, either offering more configurations or lower prices. Vehicles such as the Lantu Dreamer PHEV, XPeng X9, and Buick GL8 PHEV have sales volumes that are close to or have surpassed the Denza D9.

Facing challenges in the MPV market, BYD has begun to respond. In January this year, BYD's Dynasty series launched the Xia, also based on the e-platform and priced between RMB 250,000 and RMB 310,000, with a starting price nearly RMB 80,000 cheaper than the Denza D9.

In response to market changes, at the end of December last year, Denza D9 began offering discounts of tens of thousands of yuan. Although the Denza D9 still maintained annual sales of over 100,000 units in 2024, it has become increasingly difficult for Denza to continue enjoying the dividends of the D9.

To give the high-end Yisanfang vehicles a strong start, BYD is adopting a more cautious approach to premium vehicles. We learned that the launch of N9, originally scheduled for the fourth quarter of last year, was delayed due to research and development progress. Previously, the two Z9 models also underwent significant revisions due to a new competitor's vehicle in the first quarter of last year.

As of the end of last year, Denza already had over 400 stores, and an executive close to Denza informed us that a significant number of stores under construction will soon open. Achieving a sales breakthrough with the help of the Yisanfang platform is imperative for Denza to alleviate systemic pressure.

This is original content by Auto Pixel (autopix)

Unauthorized reproduction is prohibited