A Chinese electric truck startup backed by Baidu plans to crack Europe’s fiercely guarded commercial vehicle market not by flooding it with cheap imports, but by licensing its technology to established local manufacturers. DeepWay, founded in Hefei in 2020 as a joint venture between the search giant and logistics firm Lionbridge Group, sees technology transfer as its most viable path around looming EU tariffs on Chinese heavy-duty electric trucks.
The strategic pivot comes as Brussels faces mounting pressure to extend anti-subsidy duties from passenger EVs to commercial vehicles. European automakers argue that state support lets Chinese manufacturers undercut domestic rivals. Zhao Minyu, who leads DeepWay’s international division, outlined three possible approaches for Europe at the IAA Transportation show in Hanover. The company could export finished trucks and absorb tariffs, partner with a local factory for European production, or license its electric powertrain and assisted-driving systems to an established brand.
“Being a new, agile, tech-focused company, our success depends on integrating into the local business environment, not just product superiority,” Zhao told Nikkei Asia.
DeepWay showcased two heavy truck models targeting a European launch next year, pending regulatory customization. Both vehicles run on a platform designed from scratch for electrification rather than retrofitted from diesel architecture. The low-chassis design improves high-speed stability, while drive-by-wire technology enables faster autonomous control responses. Current models deliver 350 and 400 kilometers of range per charge respectively.
The company has already raised two pre-IPO funding rounds this year, attracting backers including UAE’s Stone Capital, Singapore’s ABC Impact, Australian pension fund NGS Super, and Lenovo. Revenue hit RMB 3.96 billion in 2025 with over 13,000 trucks sold by April 2026, though profitability remains elusive. More than 7,500 of those trucks feature Level 2 assisted-driving technology.
Meanwhile, BYD announced its own European heavy truck launch for next year at the same Hanover event. Competitors Sinotruk and SuperPanther already assemble electric trucks in Austria through a Steyr Automotive partnership. As Chinese manufacturers converge on Europe’s trucking sector, collaboration may prove more effective than confrontation.
