Chinese automaker BYD Co. has gained full control of its joint venture with Mercedes-Benz Group AG, ending a 13-year collaboration in China’s electric vehicle (EV) market. BYD acquired the remaining 10% stake in Denza, the premium EV brand, making it solely owned by BYD. The financial details of the deal were not disclosed, and Mercedes-Benz has declined to comment. As BYD cements its position as the world’s largest EV manufacturer, producing around 3 million vehicles annually, the move comes amid rising trade tensions between China and Europe. The European Commission is preparing to impose tariffs on Chinese EVs, potentially as high as 36.3%, with a vote from EU member states expected next week.

Denza, founded in 2011 as a joint venture between BYD and Mercedes, was created to produce premium electric vehicles but struggled with underwhelming sales. Mercedes had previously reduced its stake in the company to 10% in 2021. BYD’s complete takeover is seen as a strategic move to strengthen its standing in the fast-growing EV market, while foreign automakers face challenges scaling back operations in China due to a complex trade environment. Additionally, BYD has plans to build a $1 billion plant in Turkey, which will enhance access to the European market and serve the growing domestic demand for EVs in Turkey.