Transport operators in Germany, Belgium, and Austria are favoring electric buses made by Chinese manufacturers BYD (HKG:1211, SHE:002594) and Yutong Bus (SHA:600066) despite European misgivings about security and Chinese dominance in transport, Nikkei Asia reported Monday.

Bottenschein Reisen, a German bus company, cited BYD's practical design, safety, and reliability for their selection, the report said. It is expecting seven BYD buses by June.

De Lijn, a Belgian bus company, also awarded BYD a contract for up to 500 buses, according to the report.

Meanwhile, Yutong is slated to win a bid in Germany's Rhineland-Palatinate state, the report said, citing a public transport manager.

However, the city of Salzburg in Austria is protesting a transition to Yutong e-buses due to data manipulation fears, citing the transmission of bus data to China, according to Nikkei.

Shares in BYD slipped 2% in Hong Kong while Yutong's shares fell nearly 1% in Shanghai on Tuesday morning.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)