It will launch three new models including MPVs and SUVs within two years after Denza completes its shareholding adjustment, local media said.

(Image credit: Denza)

will significantly increase its stake in its joint venture with Daimler, 10 years after the company was founded.

BYD today signed a share transfer agreement with Daimler for their joint venture Denza, which will increase BYD's stake in the company to 90 percent and reduce Daimler's stake to 10 percent.

The move, which is subject to regulatory approval, is expected to be completed by mid-2022. The two currently each hold a 50 percent stake in Denza.

In a separate announcement, BYD said it and Daimler will each make an RMB 1 billion capital increase in Denza in monetary terms, which will not change their current shareholdings.

BYD and Daimler set up the joint venture in February 2011, with its registered address at BYD's Shenzhen headquarters, the first Sino-foreign joint venture in China to focus on new energy vehicles (NEVs).

Information on Denza's website shows that it is currently selling the Denza X plug-in hybrid and pure electric versions.

A report cites BYD sources as saying the company will invest more resources and core technologies in Denza's automotive business to help it make more progress in product development, manufacturing, sales channels and services.

After Denza completes its equity restructuring, it will launch three new models including MPVs and SUVs within two years, according to the report.

BYD and Daimler are confident in the growth potential of China's NEV market, and Daimler as a shareholder will continue to support Denza's development, the report said.

The future of BYD's automotive business will consist of four segments, including Dynasty, Ocean, Denza and another premium brand, according to the report.

BYD will launch its premium brand in the first half of next year, and the first car will be a hardcore crossover priced at around RMB 500,000 to 1 million, quoted the company as saying earlier this month.

The Denza brand, a collaboration between BYD and Daimler, will also have a new model release next year, and both sides will invest more in the brand, the report said.