Chinese electric vehicle giant BYD has formally launched its upmarket Denza brand in Europe in a bid to compete with the likes of BMW and Mercedes and expand its presence in the region.

The company said it would launch sales in Europe by the end of the year, starting with an EV version of its 1,000-horsepower Z9 GT sport wagon, followed by a hybrid version in early 2026.

It didn’t disclose the pricing for the Z9 GT, but said it would exceed the price of its current BYD-branded range in Europe, which sells for 72,000 euros (£61,740).

Z9 GT sport

BYD also plans to sell the Denza-branded D9 van in Europe From the end of this year, and could also add two off-road vehicles, a company representative told Reuters.

BYD is planning to start production at its first European plant, in Hungary, in October, but the initial Denza vehicles are to be imported from China, Reuters reported.

BYD is also planning to bring a second factory online in March 2026 with a capacity of 500,000 cars per year.

Speaking after Milan Fashion Week, where BYD held the launch, special adviser for Europe Alfredo Altavilla said BYD would debut technologies first in Denza vehicles that would later appear in lower-priced BYD-branded units.

The company had a 2.8 percent of the European EV market last year.

The Z9 GT is a competitor to the Porsche Taycan Sport Turismo, with similar styling, and delivers 1,000 horsepower via three electric motors, two on each of the rear wheels and a third for the front axle.

High-end models

It has a 100.1 kWh battery which BYD estimates can offer up to 391 miles (630 km) of range on a single charge.

In China the model sells for $47,500 (£37,340) to $59,000, depending on the variant and options, but the pricing is expected to be much higher for the European model, in part due to import duties brought in last year.

BYD topped Tesla in worldwide revenues last year and in recent quarters has also outsold Tesla in pure EVs.

Its sales are more than 90 percent in China.

The Denza brand began as a joint-venture with Mercedes-Benz, but BYD now wholly owns the business.