Rising Trends and Market Dynamics in Europe's Electric Bus Industry
Key Ideas
  • Electric buses in Europe showed a 47% registration increase in 2023, with Volkswagen Group leading the market.
  • Hydrogen fuel-cell buses gained traction in 2023 with a 65% sales increase, hinting at a promising future for the technology.
  • The first quarter of 2024 saw a slight decline in electric bus market share but a 7.6% increase in registrations compared to the previous year.
  • While domestic manufacturers currently dominate, Chinese OEMs are expected to make a comeback, potentially impacting market dynamics.
The electric bus market in Europe has been steadily growing, with full-electric and plug-in hybrid vehicles capturing an 18% share by the end of 2023. Despite diesel buses still dominating with a 60% share, the electric bus segment showed significant progress. Volkswagen Group emerged as the market leader, followed closely by CAF and BYD. In 2023, hydrogen fuel-cell buses saw a remarkable 65% increase in sales, indicating a shift towards alternative powertrains in the medium and heavy bus segment. The market dynamics also witnessed a decline in the shares of hybrids and alternative fuels. The first quarter of 2024 maintained the momentum with a 7.6% increase in electric bus registrations, despite a slight decrease in market share. Fuel-cell buses faced a drop in market share, signaling a competitive landscape. Domestic manufacturers like First Bus and Daimler led the market, but the potential resurgence of Chinese brands poses a future challenge. As competition heats up, concerns about fair competition arise, especially with allegations of heavy subsidies for Chinese brands. Regulatory bodies, including the EU, are expected to closely monitor the market to ensure fairness and transparency as the industry evolves.
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