Chinese Companies in Europe — 2026-09-12
Hungary’s new government is intensifying environmental scrutiny on Chinese EV giants BYD and CATL, threatening delays to their flagship European plants. Simultaneously, the European Commission proposed new public procurement rules that could effectively exclude Chinese firms from strategic EU contracts, while BYD expanded its logistics fleet with ten new car carriers.
Chinese Companies in Europe — 2026-09-12
Top developments
BYD
BYD has reportedly ordered 10 additional car carriers, each with a capacity of 9,200 car equivalent units (CEU), according to maritime publications cited by CarNewsChina on September 11. This order would expand BYD’s dedicated shipping fleet to 18 ships, significantly boosting its ability to transport vehicles directly from China to Europe. The move underscores BYD’s strategy to control its supply chain logistics amidst growing geopolitical friction and potential tariff barriers.
Another major Chinese automaker heads to Europe: debut in October, sales later this year
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Li Auto bids farewell to CATL, echoing Xpeng
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BYD & CATL
Hungary’s new government is tightening environmental enforcement at factories operated by BYD and CATL, as reported by Nikkei Asia on September 11. This political shift adds significant risk to BYD’s plant in Szeged, which is already running a year behind schedule, and stalls CATL’s production ramp-up. The crackdown involves reviewing investment and subsidy agreements signed under the previous Viktor Orbán administration, signaling a more hostile regulatory environment for Chinese industrial investments in Central Europe.
Li Auto
Li Auto is preparing for its European debut with the "Li 6," the European version of the i6 model, scheduled for an auto show debut in October with sales following later this year. This entry marks another major Chinese premium EV maker entering the competitive European market. Li Auto’s expansion follows a broader trend of Chinese automakers diversifying their brand portfolios and targeting specific segments in Europe beyond mass-market offerings.
Another major Chinese automaker heads to Europe: debut in October, sales later this year
carnewschina.comcarnewschina.com
carnewschina.com
carnewschina.com
carnewschina.com
Li Auto bids farewell to CATL, echoing Xpeng
carnewschina.com
European Commission
The European Commission has proposed legislation introducing a "European preference" in public procurement for strategic services, a move explicitly targeting Chinese companies. Although published on September 9, the proposal is actively shaping current market sentiment and regulatory discussions this week. It aims to shield a market valued at €2 billion annually from non-EU competitors, potentially barring Chinese tech and infrastructure firms from key public tenders.
Deals, expansion & investment
BYD Logistics Expansion: As noted above, BYD’s order for 10 new car carriers represents a massive capital expenditure in logistics infrastructure to support its export-driven model.
Li Auto Market Entry: Li Auto confirmed plans to launch the Li 6 in Europe later this year, adding to the roster of Chinese brands challenging established European manufacturers.
Regulation & market context
Hungarian Environmental Crackdown: The new Hungarian administration is leveraging environmental regulations to review and potentially delay operations at Chinese battery and EV plants. This regulatory pressure is forcing companies like CATL and BYD to navigate a more complex compliance landscape than previously anticipated under the previous government.
EU Procurement Protectionism: The proposed "Buy European" rules in public procurement signal a shift toward industrial policy that prioritizes local suppliers over cost efficiency. This move is part of a broader EU strategy to reduce dependency on Chinese technology and manufacturing, particularly in sectors deemed strategically important.
On the radar
- Li Auto Debut: Watch for the official unveiling of the Li 6 at upcoming auto shows in October, which will reveal pricing and specifications for the European market.
- BYD Hungary Timeline: Monitor updates on the Szeged plant’s construction status following the new government’s environmental review; further delays could impact BYD’s 2026/2027 delivery targets.
- EU Procurement Legislation: Track the legislative progress of the public procurement proposal in the European Parliament, which could become law within the next year.
By the numbers
- 9,200 CEU: Capacity per new ship ordered by BYD for its expanding logistics fleet.
- 18 Ships: Total fleet size for BYD if the new vessel orders are confirmed and delivered.
- €2 Billion: Annual value of the EU public procurement market targeted by the new exclusionary rules.
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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