Can Denza beat Lexus? BYD’s luxury gamble arrives

BYD is stepping into the luxury ring with its new upmarket brand Denza, launching the 2026 Denza B5 and B8 plug-in hybrids (PHEV) in Australia from $74,990 plus on-road costs (ORCs). The move pushes the Chinese giant into Lexus and BMW territory as it tries to shift its image from value-focused electric vehicle (EV) disruptor to full-blown premium contender – and early customer interest is strong. 

For years, BYD has been known for its affordable EVs, but Denza represents phase two of its global strategy: selling luxury SUVs for between $75,000 and $100,000.

Two models lead the charge.

The Denza B5 is a five-seat off-road focused SUV pitched at Prado and Lexus GX buyers.

It features hydraulic suspension and twin locking differentials, offering considerably more hardware than the BYD Shark.

The larger Denza B8 is a six- or seven-seat luxury SUV best described as a penthouse on wheels, leaning heavily on comfort and tech.

Both models arrive loaded with high-end features including jumbo digital displays, Nappa leather trim and ventilated, heated and massaging seats – depending on variant.

Denza has also made significant Australia-specific upgrades following extensive local testing.

Product manager for Denza Australia and New Zealand Harry Li said the brand selected the “highest grade” powertrain cooling and air-conditioning available.

“For Australia, we tested it in the Aussie summer,” he said.

“We’ve used our Middle Eastern spec, the highest level of temperatures we have, good for 55–60 degree temperatures.”

Li confirmed that suspension was stiffened by 30 per cent compared to domestic (China) market model and payload increased to around 490kg.

Denza’s value pitch is clear: deliver premium equipment and PHEV capability at pricing that undercuts European rivals by tens of thousands.

Denza Australia and New Zealand boss Mark Harland said the brand has already received 5000 expressions of interest, calling Lexus its primary target.

“We want to conquest [premium buyers] as much as possible,” Harland said.

“Redefine what a premium price point is.”

Harland added that Denza also sees an opportunity to tempt BMW and Audi loyalists, claiming no rival can match the tech and value combination that Denza offers.

BYD faced international scrutiny in 2024 after Brazilian authorities halted construction of a major BYD factory, citing “slave-like” conditions affecting more than 100 Chinese nationals working in Brazil.

BYD severed ties with the contractor, but the incident raised questions about the brand’s ethics – an uncomfortable factor for BYD as it positions Denza as a premium, aspirational marque.

Beyond Denza, BYD’s long-term plan has a third phase, leveraging extreme-performance Yangwang brand’s U8 SUV capable of floating and crab-walking, and the U9 supercar whose clever suspension system allows it to jump or hop.

These halo products are designed to overhaul BYD’s image from value-focused disruptor to global luxury heavyweight.

The challenge for now? Convincing Australians that a $75,000–$100,000 Chinese SUV belongs on the same shopping list as a Toyota Prado, Lexus GX, or European luxury brand.

Denza plans to open between 20 to 25 showrooms by the end of 2026, with two new models expected each year.

The Z9 GT is tipped to be next.

Stay tuned for full local reviews and comparisons of the Denza B5 and B8 in early 2026 as the brand prepares for its biggest test yet: proving it can deliver credible luxury while undercutting the established players.

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