Chinese electric truck and assisted driving startup DeepWay is hoping to gain an edge over its peers in Europe’s mature industry by transferring technology to local partners with a view to eventually manufacturing locally, a company executive told Nikkei Asia at a trade show.
The Hefei-based company was founded in 2020 as a joint venture between artificial intelligence giant Baidu and Chinese logistics and financing firm Lionbridge Group. After two successful pre-IPO funding rounds this year, DeepWay has an impressive list of backers—United Arab Emirates’ Stone Capital, Temasek-backed private equity firm ABC Impact, Australian pension fund NGS Super, and Chinese computer maker Lenovo, to name a few.
The startup, which submitted a draft IPO prospectus to the Hong Kong Stock Exchange in May, is entering the European Union at a time of growing pressure on the bloc’s leadership to expand anti-subsidy duties on Chinese passenger electric vehicles to cover heavy-duty electric trucks. The EU is fighting to protect its automakers against what it deems to be unfair state subsidies that allow Chinese EV makers to sell their vehicles cheaply on the continent.
Zhao Minyu, general manager of DeepWay’s international business unit, told Nikkei Asia at the IAA Transportation trade show in Hanover that the company’s strategy goes beyond selling in Europe.
“Our three potential market entry models for Europe are exporting complete trucks that are subject to tariffs, partnering with a local manufacturer to produce in Europe, and licensing EV and intelligent driving technology to an established local brand,” said Zhao, who is also DeepWay’s director of strategy and product planning. “Being a new, agile, tech-focused company, our success depends on integrating into the local business environment, not just product superiority.”
At the trade show, DeepWay showcased two heavy truck models that it intends to launch in the European market next year pending customization for European regulations and operating conditions, but Zhao was even more enthusiastic in flagging the company’s self-developed core powertrain and Level 2 human-assisted autonomous driving technology.
Zhao said DeepWay’s focus in Europe is on building the supporting ecosystem, including after-sales partners, charging infrastructure, financing and leasing, although it does not yet have a base on the continent.
DeepWay’s founding was based on the realization that most electric trucks in China were retrofits of diesel models, unsuitable for autonomous driving due to insufficient safety frameworks and weak control platforms. In such vehicles, batteries mounted behind the cabin raised the center of gravity and reduced stability. Many of those batteries also lacked range.
This prompted the startup to design from scratch an electric truck platform with a low chassis to maintain high-speed stability, integrated with drive-by-wire technology that allows quicker reactions in autonomous control and equipped with an aerodynamic design for energy efficiency.
At the end of 2024, DeepWay was manufacturing the entire powertrain for its second-generation truck, including battery, e-axle, and power electronics, which meant that it had full ownership of design. The two DeepWay models showcased at IAA can travel 350 kilometers and 400 kilometers, respectively, on one charge, the company said.
In early 2025, the company expanded to Southeast Asia, the Middle East, Australia and New Zealand—markets with less entrenched local automotive industries.
Due to licensing restrictions, DeepWay does not own manufacturing plants in China and instead uses contract manufacturers and has a primary partner in Shandong.
“Facing much larger Chinese competitors that leveraged scale for lower pricing and having weaker supplier negotiating power, including in terms of batteries, we chose vertical integration to control core technology,” Zhao said. “Rather than aiming directly for Level 4 (fully autonomous), which we considered a money-burning path for startups, we launched with Level 2 autonomy to sell to real customers, gather real-world data, and iteratively train and refine Level 4 systems, thereby generating revenue while reducing reliance on investor funding.”
The company reported revenue of RMB 3.96 billion (USD 589 million) in 2025, although it has yet to turn a profit. By April 2026, it had sold over 13,000 trucks, more than 7,500 equipped with Level 2 assisted-driving technology. Some of its assisted driving trucks are used in Inner Mongolia and Xinjiang.
Chinese presence was substantial at this year’s IAA, which was focused on the trucking industry. EV manufacturer BYD announced plans to launch its first heavy-duty truck in Europe next year, which it aims to manufacture on the continent subsequently.
Other major Chinese brands at the trade show also highlighted their European manufacturing footprint. For instance, Sinotruk and SuperPanther are already integrated into the European industrial landscape, assembling and building their electric trucks directly in Austria in partnership with Steyr Automotive. Sany Truck underscored its long-term European strategy, which is being implemented in close cooperation with its German partner Putzmeister.
This article first appeared on Nikkei Asia. It has been republished here as part of 36Kr’s ongoing partnership with Nikkei.
Note: RMB figures are converted to USD at rates of RMB 6.72 = USD 1 based on estimates as of September 24, 2026, unless otherwise stated. USD conversions are approximate and, where appropriate, rounded for ease of reference. They may not fully match prevailing exchange rates.
