The Geneva show revealed that Denza, Yangwang or IM could soon want to establish themselves in Europe. The paint is still fresh at MG and BYD that they already want to introduce new brands.
MG and BYD have decided to exhibit their new products at the Geneva Motor Show, which takes place from February 26 to March 3. A little overshadowed by Renault news and the massive absence of traditional manufacturers, the other manufacturers present at the show should not be forgotten. The two Chinese groups notably came with little more than new cars. The names Yangwang, Denza and IM probably don’t mean anything to you, but these new names belonging to BYD and MG will be in the automotive news in the coming months.
These three new brands fully intend to enter the European market by 2025. Why? Because they can. The two Chinese groups want to continue to conquer market share in Europe, however we are far from the mass market with the models presented at the show.
What are Denza, Yangwang and IM?
In addition to being from Chinese automobile groups, the 3 brands share another point in common: they are all high-end technological showcases, compared to the main brand already established in Europe. It is also interesting to see how the brands are presented in their respective press releases.
Denza
A premium brand from BYD, represents a new era of prestigious and technologically advanced electric mobility. The Denza brand was born from the joint venture between BYD and Mercedes for the Chinese market. If the German brand has generally withdrawn from Denza, there remain traces of the German manufacturer in the brand’s products and in its positioning on the market.
Yangwang
A bold luxury sub-brand of BYD, showcases breathtaking innovations in new energy vehicle technology and premium driving experiences.
Yangwang targets even more wealthy clients. A model like the Yangwang U8, a huge luxurious, hybrid and cutting-edge SUV, is worth more than a million yuan in China, the equivalent of €130,000. If we calculated price estimates for marketing in Europe, it could reach between €220,000 and €250,000 depending on BYD’s pricing habits. This is very far from the collective image that we have of Chinese cars.
I.M.
IM for “Intelligent Mobility”. The new 100% electric manufacturer from the SAIC Motor group will produce innovative, ultra-technological cars, promising an exciting driving experience.
IM models target a wider audience in China with affordable premium. For example, the IM LS6 from the SAIC group appears as a 4.90m Fastback SUV, with a price of 215,000 yuan in China, or around €28,000. Which could give a price of around €45,000 to €50,000 in Europe, a positioning close to a Tesla Model Y.
Beyond price considerations, all these brands present technological advances, whether on the battery, engines, driving aids or connected services. Enough to remind European manufacturers that they must continue to innovate quickly.
Will the models presented in Geneva arrive in Europe?
Denza had already exhibited its D9 at the Munich Motor Show last September in a particularly luxurious configuration. This minivan/van, more suitable for passenger transport with up to seven seats available, could be one of the first products offered by the brand in Europe in hybrid or electric form. A niche market which is unlikely to panic European brands.
On the other hand, Denza also exhibited for the public days the N7, a 5-seater electric SUV, which could also enter the race on the European market, from the end of 2024, according to the numerous projects of BYD.
BYD also exhibited the large luxury adventure SUV Yangwang U8 on its stand. This 3.4-ton hybrid behemoth, which floats and can turn on itself, features innovative technologies. It is one of the showcases of BYD’s technical know-how. The Geneva Motor Show was an opportunity to test customer appetite for this model, a competitor to the Range Rover or Mercedes G class. It is not excluded that this new branch of BYD will appear in Europe in 2025. It It will be interesting to see if the U9 sportswoman is also included in the program.
On the MG side, it is also time to reflect, to see if the IM brand could be favorably received in Europe to complete the offer of the Chinese manufacturer, rather known for its affordable electric cars. A new brand in Europe or a range of cars, as DS was for a long time within Citroën before emancipating itself? Nothing seems set in stone at the moment. The brand took advantage of the Geneva Motor Show to unveil a world novelty: the IM L6 electric sedan, which could arrive in Europe accompanied by the LS6 model also displayed on the stand.
Two other cars were also presented: L7 and LS7, but they are a little far from the consumption habits of European buyers.
Are we really waiting for these new brands on the European market?
For the moment, “Chinese premium” is having difficulty finding its audience in Europe. It must be said that these models, already expensive on the Chinese market, are just as expensive in Europe. Even if they generally position themselves on more affordable prices for equivalent equipment than German brands, the price argument is not enough to boost sales. Brands like Nio and Xpeng only achieved between 2,000 and 2,500 registrations in 2023. A low score which does not really provide the growth opportunities hoped for by these Chinese manufacturers. It will take time for these brands to gain the trust of Europeans, but some do not have the luxury of waiting if they want to continue.
The situation is a little different for brands which can rely on the implementation work already carried out by the group to which they belong. MG and BYD are digging their hole in Europe and these three brands could benefit from it.
The fact remains that the European market is not looking for the latest, most technological electric car, but the most rational electric car. This rationality for choosing a model involves either the autonomy offered or the price. Denza, Yangwang and IM may have a go, but will the investment be worth it? Nothing is less sure.
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