AutoBeta(AutoBeta.net)02/16 Report--

According to the national enterprise credit information system, Teng Teng Automobile sales and Service Co., Ltd. was established on February 14 as a wholly-owned subsidiary of BYD Automotive Industry Co., Ltd., with a registered capital of 50 million yuan. He Zhiqi, the legal representative, is the general manager and chairman of BYD Automobile Co., Ltd., the company's business scope includes new car sales, new energy vehicle sales, electrical accessories sales and other business.

In response, Zhao Changjiang, director of BYD's high-end brand preparation office, confirmed the matter, saying that Teng Teng Automobile sales and Service Co., Ltd. had officially issued a business license on February 14, and the reconstruction of high-end services and experiences was about to begin.

Data show that Shenzhen Teng Teng New Energy Automobile Co., Ltd. was established on February 16, 2011, with BYD Automotive Industry Co., Ltd. and Daimler Greater China Investment Co., Ltd. holding 50% respectively. At the beginning of the brand's birth, Wang Chuanfu, chairman of BYD, said: "as the child of Daimler and BYD, momentum is a brand born on the shoulders of giants."

The first production car, Tengli 300, was launched at the 2014 Beijing Auto Show and officially went on sale in September of that year at a price of 36.9-399000 yuan. From the point of view of the time of development, the starting point of Tengli Automobile is not slow, because Li Bin, chairman of Yi car, just led the team to set up NIO in 2014, and Tesla of the United States has just landed on Nasdaq under the leadership of Musk.

However, the momentum did not go well, although it developed early, although it relied on BYD and Daimler. The sales volume of Tengli 300 is not ideal after listing, although it has been upgraded many times and launched Tengli 400, Tengli 500, etc., but it is still unable to reverse the market. Public data show that Tengli sold 2800 vehicles, 2287 vehicles, 4713 vehicles, 1974 vehicles and 2089 vehicles respectively from 2015 to 2019, with a cumulative sales volume of 13863 vehicles in four years and a cumulative loss of more than 3.5 billion yuan over five years.

In the past five years, both BYD and Daimler have been laying out new energy vehicles, such as BYD's dynasty series and Daimler's EQ series, which do not focus on momentum, but provide financial support for development. Data show that in May 2017, May 2018, February 2019, May 2019 and January 2020, BYD and Daimler increased their capital to Tengli by 1 billion yuan, 800 million yuan, 400 million yuan, 300 million yuan and 350 million yuan respectively, and gained a total of 5.4 billion yuan in shareholder capital increase over a three-year period.

In order to reverse the booming market situation, BYD and Daimler have also made efforts. Beijing Mercedes-Benz sales and Service Co., Ltd. is directly responsible for the operation of the brand, including sales, marketing and brand communication, customer service, etc., while BYD is in charge of manufacturing. At the 2019 Guangzhou Auto Show, Tengli X, the second model of Tengli, was officially put on the market, with a price of 31.98-357800 yuan for pure electric models and 28.98-319800 yuan for mixed models. In terms of appearance, Tengli X incorporates a large number of Mercedes-Benz design languages and is sold at Mercedes-Benz dealers to enhance brand awareness. However, Tengli X still failed to reverse the disadvantage, with cumulative sales of only 4175 vehicles in 2020, due to the fact that Tengli X is based on BYD Tang EV600, although it is integrated into the design of many Mercedes-Benz, but the foundation is still BYD.

Although Tengli cars do not perform well in the new energy vehicle market, BYD obviously does not intend to give up Tengli cars under the heavy investment. On December 24, 2021, BYD announced that holding subsidiaries BYD Automotive Industry and Daimler have respectively increased their capital by 1 billion yuan to Shenzhen Tengli New Energy Automobile Co., Ltd. On the day of the capital increase announcement, market sources pointed out that BYD and Daimler had signed an equity transfer agreement to adjust the momentum, and the two sides planned to transfer the Tengli stake. After the completion of the transfer, the shares held by Daimler and BYD have been adjusted to 10% and 90%, and the related matters are scheduled to be completed by mid-2022. BYD and Daimler did not comment directly on the equity transfer reports and could not confirm the authenticity of the news.

However, with the establishment of Teng Teng Automobile sales and Service Co., Ltd., there are some points worth exploring. According to the plan, Tencent will launch three new cars in China, including the MPV, medium-sized SUV and medium-and large-scale SUV, of which the new high-end MPV will be the first high-end model. Previously, Zhao Changjiang solicited demand for MPV from netizens on Weibo, and this MPV should belong to Tengli car. It is expected that the configuration of this MPV should be higher and the price will be higher. Earlier, there were media reports that Zhao Changjiang Consulting's new MPV's product demand was based on BYD's new high-end brand, and the independence of Tengli Auto led the industry to speculate that Tengli Automobile was the new high-end brand that BYD would launch, but BYD denied that "the high-end brand has another place, and Teng Teng will be one of BYD's independent brands." According to previous reports, BYD's new high-end brand is expected to sell for between 50 and 1 million yuan, with the first model being a hard-line off-road vehicle.

The success of the high-end momentum still depends on the product. At present, the momentum models on sale do not have this strength, and the sales channel needs strong product matrix support, so the future new model strategy is related to success or failure.

BYD said it would devote more resources and core business to the momentum to help it take it to a new level in areas such as product research and development, smart manufacturing, channels and sales services, and work with Daimler to promote the better and faster development of the brand. On the basis of momentum business cooperation, the two sides will further deepen the cooperative partnership and expand the scope of cooperation.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat