Denza has launched the updated N7, lowering the price significantly in an attempt to once again attract potential Tesla Model Y customers.

(Image credit: Denza)

BYD's (OTCMKTS: BYDDY) premium brand Denza launched its all-electric SUV N7 in July 2023 to take on Tesla's (NASDAQ: TSLA) Model Y, though that effort didn't seem to live up to expectations.

Now, Denza has rolled out an updated version of the N7, bringing the price down significantly in an attempt to once again attract potential Model Y customers.

Denza officially launched the updated N7 at an event in Shenzhen on April 1, with a starting price of RMB 239,800 ($33,160), a reduction of RMB 62,000, or 20.54 percent, from its predecessor's RMB 301,800 starting price.

The Denza N7 is a 5-seat mid-size SUV, with the entry model measuring 4,860 mm in length, 1,935 mm in width and 1,625 mm in height, and a wheelbase of 2,940 mm.

For comparison, the Tesla Model Y is slightly smaller, with length, width and height of 4,750 mm, 1,921 mm and 1,624 mm respectively, and a wheelbase of 2,890 mm.

The updated Denza N7 is offered in four variants with starting prices of RMB 239,800, RMB 259,800, RMB 289,800 and RMB 329,800 respectively.

The old Denza N7 was offered in six variants with starting prices of RMB 301,800, RMB 321,800, RMB 319,800, RMB 339,800, RMB 349,800, and RMB 379,800.

The Tesla Model Y is offered in three variants in China, all of which saw a price hike of RMB 5,000 yesterday, with the latest starting prices at RMB 263,900, RMB 304,900, and RMB 368,900 respectively.

The updated Denza N7 is powered by blade batteries from BYD, with 71.8 kWh in the entry-level variant and 91.3 kWh in all other variants. It has a CLTC range of 550 km, 702 km, 630 km, and 630 km for its four variants respectively.

Except for the entry-level variant, the Denza N7 supports simultaneous charging with two charging guns up to 230 kW and can get a range of 350 kilometers in as little as 15 minutes of charging.

Its two lowest-priced are single-motor rear-drive models. The entry version has an electric motor with a maximum power of 170 kW and a peak torque of 380 Nm, which allows it to accelerate from 0 to 100 kilometers per hour in 7.5 seconds. The other variant has an electric motor with 230 kW of peak power and 360 Nm of peak torque and can accelerate from 0 to 100 km/h in 6.8 seconds.

The two pricier variants are both dual-motor four-wheel drive models, both with 160 kW of peak power and 310 Nm of peak torque from the front motor, and 230 kW of peak power and 360 kW of peak torque from the rear motor. Both variants have a 0-100 km/h sprint time of 3.9 seconds.

In terms of smart driving features, depending on the variant, the updated Denza N7 has two assisted driving systems, DiPilot 100 and DiPilot 300, with the former supporting functions including Navigate on Autopilot (NOA) on the highway, valet parking, and the latter additionally supporting city NOA.

Highway NOA is already available in more than 40 cities for the Denza N7, with nationwide coverage coming as soon as the fourth quarter.

The model's city NOA feature is expected to be rolled out to vehicles from the end of April, with nationwide coverage by the end of this year.

Customers who pay a deposit of RMB 2,000 to order the updated N7 on or before May 5 will receive RMB 10,000 off the final payment, which translates to a RMB 8,000 discount.

Before May 31, owners of the original Denza N7 can receive a subsidy of up to RMB 50,000 if they replace it with a newer version of the N7.

Denza was founded in 2010 as a joint venture between BYD and Daimler, each holding a 50 percent stake at the time. In February 2022, Daimler was rebranded as Mercedes-Benz. BYD increased its stake in Denza to 90 percent in 2022.

In August 2022, Denza let the D9 MPV go on sale, the brand's first model after the reorganization.

On July 3, 2023, Denza N7 was launched, the second model after Denza's shareholding reform and the brand's first SUV. Its first deliveries began on July 29, 2023.

The Denza N7 targets potential Tesla Model Y customers, but its sales performance has been lukewarm since its launch.

Denza N7 deliveries topped out at 1,810 units in September 2023, and have been at just over 1,000 units in the following three months, according to data compiled by CnEVPost.

In each of the last three months, Denza N7 deliveries have been below 500 units per month.

($1 = RMB 7.2308)

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