SHENZHEN-BASED BYD and Germany’s Daimler AG introduced their first jointly developed electric car at the Auto China expo in Beijing on Sunday.

    The DENZA will be eligible for government subsidies when it goes on sale in September in China. Vehicles will be priced at 369,000 yuan (US$60,000) or 399,000 yuan, depending on chosen equipment and accessories.

    DENZA, now a distinctive Chinese brand for the two companies, is part of the German auto maker’s push to expand its footprint in the world’s largest car market, while boosting economies of scale for electric cars.

    Speaking at Auto China on Sunday, Thomas Weber, Daimler’s head of research and development, said: “The DENZA is the first complete vehicle that Daimler has developed together with BYD outside of Germany.”

    The 5-seater, produced by Shenzhen BYD Daimler New Technology Co. Ltd., will have an operating range of 300 km. It is said the average daily driving distance in China is 50 to 80 km a day, so most customers will likely need to charge their car twice a week.

    On Sunday Daimler said the DENZA would be eligible for government subsidies totaling almost 120,000 yuan, and this may be deducted from the price of the vehicle.

    The DENZA will also be exempted from many local government policies intended to limit the number of new cars on the road, Daimler said. Owners can acquire a license plate in Beijing bypassing the mandatory lottery process for conventional vehicles. In Shanghai and Shenzhen owners may acquire a license plate free of fees.

    Lu Xiangzhen, an official with Shenzhen Municipal Development and Reform Commission, said the city government will also grant subsidies for purchase taxes, parking fees and charging poles. Detailed policies are yet to be finalized.

    DENZA will be manufactured in the joint venture’s plant in Pingshan, Shenzhen, using German automated manufacturing equipment, according to Shenzhen Special Zone Daily.

    Rapid economic growth and urbanization transformed China into the world’s greatest emitter of greenhouse gases, resulting in polluted cities. Governments at all levels are seeking ways to promote low-emission vehicles in an effort to reduce smog.

    China plans to have 5 million electric vehicles on the road by 2020 and the government has offered subsidies for domestically developed electric cars.

    (SD-Agencies)