Manufacturers warn of growing pressure from non-European competitors and call for a strategic EU industrial policy
Europe’s independent bus and coach manufacturers are sounding the alarm: in an open letter addressed to the European Commission and the governments of EU and EFTA countries, they warn of a growing loss of competitiveness compared with manufacturers from outside Europe. The companies believe that the rapid expansion of Chinese suppliers in particular threatens Europe’s technological expertise, industrial value creation and numerous highly skilled jobs.
The signatories include several long-established European manufacturers such as Beulas, Hess, Solaris Bus & Coach and VDL Bus Group. They represent a sector ranging from small and medium-sized enterprises to internationally active companies, many of which remain family-owned businesses.
According to the manufacturers, a strong European bus industry is essential for achieving the European Union’s strategic objectives: a resilient, sustainable and technologically leading economy.
Europe as a pioneer in zero-emission buses
Over recent years, European cities and public transport operators have taken a leading global role in the deployment of zero-emission buses. Battery-electric buses, hydrogen vehicles and trolleybuses are increasingly shaping public transport systems. This development has been supported by ambitious European climate targets, regulatory measures such as the Clean Vehicles Directive, and extensive EU funding programmes.
According to the manufacturers, by the end of 2025 more than 60% of newly registered urban buses in EU and EFTA countries were zero-emission vehicles. Originally, these vehicles were predominantly supplied by European companies with research and development centres, manufacturing facilities and service operations located within Europe.
However, this situation is changing. Over recent years, non-European suppliers – particularly from China – have increasingly entered the European market. Their share of the zero-emission urban bus market has reportedly risen to more than 30% and is expected to increase further.
Concerns over distorted competition
European manufacturers criticise the fact that non-European companies are offering vehicles that are fully developed and manufactured outside the EU and EFTA area while simultaneously participating in public procurement procedures financed by European taxpayers’ money.
They argue that this creates the risk of public funding flowing out of Europe rather than strengthening Europe’s own industrial base. At the same time, manufacturers from third countries may benefit from state-supported export incentives, allowing them to offer lower prices than European producers.
The result, according to the manufacturers, is an increasingly unbalanced competitive environment. European companies are losing important contracts that are needed to finance investment in research, new technologies and production capacity.
Impact expected beyond urban buses
While competition in the urban bus sector is already clearly visible, manufacturers expect similar developments in other market segments. As new requirements to reduce CO₂ emissions are introduced, intercity buses, long-distance coaches and touring coaches will increasingly have to transition towards alternative powertrains.
This could lead to the same challenges already seen in the city bus market: new suppliers with vehicles developed outside Europe could gain market share, while European companies must make substantial investments in new technologies.
Call for a European industrial strategy
The signatories are therefore calling on the European Commission to introduce concrete measures. One key demand is the introduction of “Made in Europe” criteria in public procurement, particularly where projects are financed through EU funds. Such criteria should take into account the entire value chain, including research and development activities carried out in Europe.
They also argue that bus manufacturing should be recognised as a strategic industrial sector. Public procurement procedures should be adapted to ensure stronger consideration of European manufacturers – both in the direct purchase of vehicles and in tenders for transport services where operators are subsequently required to procure buses.
Further demands include ensuring compliance with international procurement rules by suppliers from third countries, involving independent manufacturers at an early stage when developing new technical regulations, and reviewing future CO₂ standards and Euro 7 requirements for buses and coaches.
The companies emphasise that they remain committed to investing in zero-emission technologies. However, they require sufficient development time and reliable regulatory conditions to remain competitive.
Industrial sovereignty as a strategic objective
Europe’s bus industry sees its future not only as a question of individual corporate success. It considers maintaining a strong vehicle manufacturing base to be a key element of Europe’s wider resilience strategy.
Producing modern buses within Europe not only safeguards jobs, but also preserves technical expertise, supply chains and innovation capabilities. Particularly in the field of sustainable mobility, the manufacturers argue that Europe must retain its technological leadership.
They therefore call on EU institutions and Member States to introduce measures to restore fair competition without delay. Only with a strong European industrial base, they argue, can the continent achieve its objectives of sustainable, independent and competitive mobility.
15.06.2026
