BYD launches luxury brand Denza in India, taking on Mercedes, Toyota

By Aditi Shah

NEW DELHI, Nov 13 (Reuters) - Chinese automaker BYD 002594.SZ launched its luxury brand Denza in India on Friday, joining rivals like Mercedes-Benz and Toyota Motor in targeting more affluent consumers in the world's third-largest car market.

BYD launched two Denza models - a seven-seater electric SUV called D9, which will compete with the Mercedes MBGn.DE V-Class and Toyota 7203.T Vellfire, and the Z9 GT, a four-door performance EV. The Denza D9 will be priced at $95,600 and the Z9 GT at $166,600.

"With this brand, we are taking an important step towards addressing the growing demand for distinctive luxury mobility experiences," Rajeev Chauhan, senior vice president at BYD India said in a statement after the launch.

BYD launched Denza in Europe earlier this year to bolster its premium image and enhance profitability and is setting its sights now on India where Mercedes MBGn.DE, the biggest seller of luxury cars in the country, reported record revenue in the country in 2025 thanks to strong demand for its high-end models - those priced above $159,000.

Hyundai 005380.KS, which entered India more than two decades ago, will launch its luxury Genesis brand in the country next year.

India's luxury car market is still small, making up just over 1% of the country's total passenger car sales of 4.4 million units in 2025. That is mainly because luxury models are largely imported and subject to high tariffs, although margins are higher and there is less competition, making it increasingly attractive.

BYD already sells its mass market and premium passenger cars in India but India's strict investment rules for countries sharing its land border have restricted BYD from bringing money into the country to set up a factory and it continues to import cars from China, with tariffs of up to 100%.