The outlook for European OEMs
The challenges facing European OEMs are illustrated by a 2024 order for 92 BYD buses, worth US$47m (€43m), from the Belgian transit company De Lijn.
Mika asserts: “This was a significant blow to local manufacturers like Van Hool and VDL Bus & Coach, which have heavily invested in electric bus production.”
Soon after, Van Hool filed for bankruptcy and a VDL spokesperson called for action from the commission, claiming that BYD benefits from heavy subsidies, creating an ‘uneven’ playing field.
The European bus market is still in its infancy, meaning there is potential for change. IDTechEx research shows that Chinese OEMs’ market share in 2023 decreased compared to 2022, driven by a surge in German sales. MAN Bus & Truck and Mercedes experienced their best electric bus sales to date, with MAN topping the sales rankings with a 16% market share, according to IDTechEx’s report.
“Have the Europeans finally caught up?,” Mika wonders. The German market faced mixed fortunes in 2023 when the federal government announced a withdrawal of electric bus subsidies.
“Transport operators are now grappling with the increased costs of electric versus diesel buses,” he concludes.
“In this environment, the most competitively-priced products will prevail and the absence of tariffs on these buses further benefits the prospects for Chinese OEMs.”
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