Shenzhen Inovance Technology is considering acquisitions in Europe, a move reflecting its readiness to compete with established industrial companies in the European market, such as Siemens AG and Robert Bosch, one of the largest automotive parts suppliers.

Inovance has become China's largest local industrial automation company, with revenue growing over 22% last year. It is also preparing for a secondary listing in Hong Kong, alongside its Shenzhen listing, which could raise up to $2 billion to fund its overseas expansion.

In this regard, Markus Winkelbauer, head of sales for Inovance in Germany, Switzerland, and Austria, said: 'We have sufficient liquidity. If an opportunity arises, we will certainly consider it.'

Inovance's Ambitions in Europe

Inovance aims to establish a stronger foothold in Europe to attract larger industrial customers and expand its manufacturing operations, according to Winkelbauer. The company, with a market value of about 165 billion yuan ($23.1 billion), started in 2003 as a supplier of elevator software.

Tue, 14 2026

Making inroads in Siemens' home market with AI-powered factory automation software may be difficult, given companies' caution about sharing sensitive data. Inovance also manufactures electric vehicle drivetrains, where sales hurdles appear less severe.

Inovance's presence in Europe remains limited, with less than 1% of its 28,000 employees in the region. The company runs offices in seven countries for product distribution, including low-voltage AC motors used to control electric motor speed.

Chinese Acquisitions in Europe

Chinese manufacturers, particularly automakers like BYD and MG (owned by SAIC Motor), are intensifying competition with established European companies such as Volkswagen. In China, local automakers have seized sales leadership with attractive electric models, ending the dominance of Volkswagen and its German peers BMW and Mercedes-Benz Group.

Companies from outside the EU face restrictions when making major acquisitions in Germany. A year after Chinese home appliance maker Midea Group acquired robot manufacturer Kuka in 2016, Germany lowered the threshold triggering review for non-EU investor acquisitions of critical infrastructure to 10%, while the threshold for other assets remained at 25%.

Recent industrial acquisitions by Chinese companies in Germany include Luxshare Precision Industry, an Apple supplier, taking a controlling stake in traditional automotive cable maker Leoni. Additionally, Agile Robots, a China-backed private company based in Munich, acquired Thyssenkrupp System Engineering GmbH this year.

Inovance Aims to Surpass Siemens

Inovance seeks to expand its business in China and aims to surpass Siemens in sales within the next two years. The company, which specializes in electric vehicle drivetrains and factory automation products, has been increasing its share of the Chinese automation market at the expense of foreign rivals, including Mitsubishi Electric, Schneider Electric, and Dassault Systemes.

Inovance reported revenue of about $6.3 billion (€5.5 billion) in the Chinese market last year, compared with $7.1 billion for Siemens.

Winkelbauer said: 'Our original plan was to surpass Siemens in China by 2030. But based on our current trajectory, it is likely to achieve that in 2028.'

Siemens lost about 1.4 percentage points of its market share in China between 2019 and 2025, the smallest decline among its Western competitors, according to James Moore, an analyst at Redburn. Germany's most valuable company responded by launching low-cost automation products designed specifically for Chinese customers.