(Yicai Global) May 29 -- BYD Automotive Industry and Daimler, parent company of Mercedes-Benz, will increase the registered capital of their new energy vehicle joint venture Shenzhen Denza New Automotive to enhance financial status and operations across China.

BYD Auto and Daimler's subsidiary Daimler Greater China will respectively invest CNY400 million (USD62 million) to increase the registered capital of Denza Auto. After the capital increase, both sides will continue holding 50 percent stake each, the major NEV developer said in a statement yesterday.

The capital increase will contribute to the improvement of the company's asset-liability ratio and the expansion of sales and service networks, enabling the JV to cover the majority of China's provincial capitals, the statement added.

China is the world's largest NEV market for three consecutive years, with some 777,000 cars sold last year, state-run Xinhua News Agency reported, citing industry figures. The central government projects annual NEV output to hit 2 million units in 2020, and NEV sales to make up 20 percent of the overall auto market by 2025, it said.

Established in 2010, Denza Auto released its first Denza brand new electric car in March 2012. The company unveiled its latest model, Denza 500, in March.

Editor: Mevlut Katik