European OEM Outlook
The challenge facing European OEMs is illustrated by an order from Belgian transport company De Lijn for 92 BYD buses for 2024, worth a total of US$47 million (€43 million).
“This is a major blow to local manufacturers such as Van Hool and VDL Bus & Coach, who have invested heavily in producing electric buses,” Mika argues.
Shortly after, Van Hall filed for bankruptcy, and a VDL spokesman called on the commission to take action, saying BYD had benefited from heavy subsidies, creating an “unfair” playing field.
The European bus market is still in its early stages and subject to change: IDTechEx research shows that Chinese OEMs' market share in 2023 is declining compared to 2022 due to a surge in sales in Germany. According to the IDTechEx report, MAN Bus & Truck and Mercedes recorded their highest electric bus sales to date, with MAN topping the sales rankings with a 16% market share.
“Has Europe finally caught up?” asks Mika. The German market faced ups and downs in 2023 when the federal government announced it would withdraw subsidies for electric buses.
“Transport operators are currently grappling with the rising costs of electric buses compared to diesel buses,” he concludes.
“In this environment, the most competitively priced products will prevail and the absence of tariffs on these buses will further benefit the prospects of Chinese OEMs.”
********************
Be sure to check out the latest edition of EV Magazine and register for our global conference series, Sustainability LIVE 2024.
********************
EV is a BizClik brand.
