Shanghai (ZXZC)- BYD Automotive Industry Co., Ltd., a holding subsidiary of BYD Co., and Daimler Greater China Ltd. will add a respective investment of RMB 400 million in Shenzhen Denza New Energy Automobile Co.,Ltd., the 50:50 joint venture of the two which manufactures and supplies supreme electric vehicles, to improve the joint venture’s asset-liability ratio and expand the sales network.

Shenzhen Denza New Energy Automotive Co., Ltd., was founded in 2010 and is based in Shenzhen, with a registered capital of RMB 3.36 billion.

The investment expansion of RMB 800 million will be mainly used in staff expense in daily operation, marketing advertising, payment to suppliers, bank principal repayment, vehicle purchasing, upgrade and test of battery and construction of service network, etc.

BYD said that the investment expansion will benefit the sustainable expansion of Denza’s new energy vehicle business. Densa will make the best of the investment to further expand the sales and service network, strengthen the cooperation with Mercedes-Benz’s core strategic dealer group to enter into Benz’s multiple dealer shop, sales and service network.

The sales of the newly launched Denza 500, a full-electric car debuted in February 2018, will be therefore increased. The Denza 500’s pre-sale price with incentives is between RMB 289,800 and RMB 329,800.