Denza takes 1000+ orders ahead of local launch

BYD’s fledgling luxury brand Denza has already found more than 1000 homes for its new B5 and B8 SUVs before it’s even officially introduced its first models locally, with another 2000 sales predicted before the end of February.

Denza executives expect the strong start to gain momentum as a combination of increasing supply and additional dealerships meet the initial demand, plus the hopeful translation of 6000 expressions of interest into sales.

Speaking at the B5 and B8’s local launch, BYD and Denza Australia chief operating officer Mark Harland said the sales trajectory would continue upwards as a growing dealership network allows more Aussies to experience the brand.

“We’ve had close to 2000 test drives and … we’re closing 50 per cent of the people that test drive our car,” he said.

“The pinch point is only having four or five stores.”

The early orders show the smaller Toyota LandCruiser Prado-sized B5 is just ahead in the popularity stakes with 60 per cent of total sales, while the larger B8 is responsible for 40 per cent.

Breaking the numbers down further, the trend of Australians wanting the higher grade of any particular model continues, with 85 per cent of B5 sales going to the more generously equipped Leopard, which gets adaptive suspension, larger wheels and more off-road features for an extra $5000.

In the B8, it’s a more surprising 50-50 split between the six- and seven-seaters.

With more luxury touches including a pair of captain’s chairs in the second row and a price tag that tips the former into Luxury Car Tax territory, Harland said the company had expected there to be a greater emphasis on seven-seat orders.

“We forecasted them (B8 variants), probably 60/40 or 70/30 in terms of the seven passengers,” he said.

“We thought most Australians like their seven-passenger cars and we priced that (7S) purposely below the luxury car tax, but it’s 50-50 now.”

Pricing for the B8 starts at $91,000 plus on-road costs for the 7S, while the 6S nudges $100k at $97,990. In the B5 family, the entry variant kicks off from $74,990 with the more off-road capable Leopard costing $79,990.

Current sales are restricted by a relatively low number of Denza dealerships and, subsequently, the number of test drives that can be conducted nationally, but the number is set to grow with Adelaide’s first showroom opening its doors last week with more set to follow.

According to Harland, the dealerships will be bolstered by dedicated ‘House of Denza’ facilities for customers with a feel of an exclusive airline lounge for use by customers.

“Brisbane, Sydney, Melbourne, will have a physical space,” he said.

“So a House of Denza where you could invite your friends, your family, you could have a board meeting, you could have a birthday party.

“You could run a Pilates class. Once you become a member of the House of Denza, it’s kind of like a business class lounge.”

Despite the positive reception and filling order books, Harland is remaining cautious given Australia’s fickle and full new-car market, but says the strength and popularity of BYD’s technological and value offering will continue to appeal to a broad audience locally.

“It’s still early days, so I’m not high fiving anyone yet, but I’m very happy with the progress,” he said.

“Australia and New Zealand as a whole, over the last few years, thanks to BYD and some other brands, is more open to Chinese brands, and BYD and others have paved that way.

“And there’s people … that are kind of sick and tired of some of the luxury brands that are demanding very high prices and don't deliver any new innovation or technology. So we’re delivering the luxury.”

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