According to European media sources, Mercedes-Benz parent company Daimler is teaming up with BYD of China to create an all-new electric car brand that will be offered exclusively in China.

Called Denza, the first model will be built around the sandwich-floor structure of the previous Mercedes-Benz B-Class, and its engineering will be a combined effort between the two aforementioned companies.

The companies are keen to capitalise on the huge potential of heavily-polluted China as a market for electric vehicles and in line with market expectations, its vehicles will reportedly be quite affordable.

No official pictures or information are available at this stage, but the first Denza vehicle is set to be revealed at the Beijing Motor Show in late April.