Chinese Companies in Europe — 2026-09-17
Hungary’s new government has intensified regulatory scrutiny on major Chinese EV and battery investments, specifically targeting BYD and CATL with stricter environmental oversight. Simultaneously, BYD announced plans to launch electric trucks in Europe next year, aiming to establish local production facilities to solidify its status as a "European company." Meanwhile, CATL faced a stock decline amid domestic market share losses, even as it received clearance to acquire a stake in a Geely battery plant.
Chinese Companies in Europe — 2026-09-17
Top developments
BYD Announces European Truck Production Plans
At the IAA Mobility show in Hannover, BYD announced it will introduce its first heavy-duty electric truck, the ETT 44, to the European market in 2027. The Chinese automaker stated that long-term plans include establishing local truck production facilities in Europe to bypass tariffs and deepen its integration into the continent's automotive sector. This move is part of a broader strategy to transform BYD from an exporter into a fully "European company" with localized manufacturing capabilities.
Hungary Increases Regulatory Pressure on CATL and BYD
Hungary’s new government is reviewing major investment agreements made under the previous Orbán administration, with a specific focus on tightening environmental regulations for Chinese companies. This political shift has led to increased scrutiny and potential delays for CATL’s battery plant in Debrecen and BYD’s vehicle plant in Szeged. The government is imposing stricter environmental oversight, which could impact the operational timelines and costs for these critical Chinese industrial projects in the EU.
CATL Cleared to Acquire Geely Battery Plant Stake
China’s market regulator has approved CATL’s acquisition of a stake in a battery plant originally built by Geely. This consolidation occurs as CATL experiences its sharpest fall in domestic market share this year, dropping to 41.45% in August. The acquisition signals CATL’s strategy to consolidate capacity and maintain dominance despite intensifying competition from rivals like BYD, whose market share rose to 20.98% in the same month.
CATL Shares Slide Amid Competitive Pressure
CATL’s shares on the Shenzhen exchange fell by 3.84% on Wednesday, extending a slide that has seen the stock drop about 35% from its peak in early May. The decline is driven by major customers like Li Auto and Xiaomi spreading their battery orders to rival suppliers, reducing CATL’s exclusive grip on the Chinese EV supply chain. This financial pressure highlights the shifting dynamics in the global battery market, where Chinese manufacturers are facing increasing domestic competition even as they expand abroad.
Deals, expansion & investment
- Seres Auto Takes Control of Aito Brand: Seres Auto has assumed full responsibility for the development, marketing, and servicing of Aito cars. Huawei, previously deeply integrated into the brand, will now act primarily as a technology provider, charging approximately $7,500 per car. This restructuring allows Seres to streamline its operations and potentially navigate international markets with clearer ownership structures.
Regulation & market context
- EU Procurement Rules Target Chinese Firms: The European Commission has proposed new public procurement rules that introduce a "European preference" for strategic public services. This legislation aims to shield EU industries from unfair trade practices and could effectively bar Chinese companies from bidding on contracts in a market valued at €2 billion annually. The proposal reflects growing concerns within the EU about dependency on Chinese technology and infrastructure.
- Supply Chain Vulnerabilities Exposed: A recent report highlights that European businesses remain largely unprepared for supply chain disruptions stemming from China. Experts note a lack of diversification among EU firms, leaving them exposed to potential trade restrictions or political shifts. This vulnerability is becoming a central topic in EU discussions on economic security and industrial policy.
On the radar
- Li Auto European Debut: Li Auto is preparing for its European debut with the Li i6 (rebranded as Li 6) expected to appear at auto shows in October, with sales commencing later in the year. This marks another significant entry by a Chinese premium EV maker into the competitive European luxury segment.
- IAA Mobility Follow-up: Further details on BYD’s truck production timeline and potential factory locations are expected to emerge in the coming weeks following announcements at the IAA Mobility show in Hannover.
By the numbers
- CATL Domestic Market Share (Aug 2026): 41.45%, down from previous highs as competition intensifies.
- BYD Domestic Market Share (Aug 2026): 20.98%, showing continued growth in its home market.
- CATL Stock Decline: Down approximately 35% from its early May peak as of September 16, 2026.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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