European truck manufacturers are maintaining a dual approach to decarbonization by investing in both hydrogen fuel-cell and electric trucks, despite increasing competition from more affordable Chinese and U.S. electric vehicle (EV) makers. This strategy was emphasized by Volvo Group, Daimler Truck, Scania, and Iveco, which last week strengthened their collaborations with Japan’s Toyota to accelerate the deployment of hydrogen trucks in Europe, supported by government initiatives, notably in Germany.
Volvo’s Chief Executive Martin Lundstedt described relying solely on electric trucks as “super dangerous,” highlighting the varied suitability of different technologies across countries. However, some industry analysts have questioned the continued investment in hydrogen-powered vehicles amid the rising presence of Chinese electric truck manufacturers such as Sany, SuperPanther, and Sinotruk, who are expanding aggressively in European markets with competitively priced models. Chinese manufacturers aim to price their trucks roughly 20 percent lower than European counterparts, with Sany planning additional model launches in Germany, Austria, and Switzerland by the end of next year.
Electric truck developments were prominent at the recent IAA Transportation exhibition in Hanover. BYD introduced a new heavy-duty truck capable of charging from 20 to 80 percent in 20 minutes, while Tesla debuted its long-anticipated Semi Truck in Europe, offering an estimated range of 550 kilometers. Transport & Environment, an environmental advocacy group, warned that European truckmakers risk losing up to 25 percent of the electric truck market to newcomers from China and the United States by 2030 unless they quicken their electric vehicle transition.
Stef Cornelis, director of freight and fleets at Transport & Environment, pointed out the cost sensitivity of trucking operators, noting that affordable, reliable trucks from new entrants could sway customer preferences. He cautioned that relying on established customer loyalty and service networks to maintain market share could be a “high-risk strategy.”
Despite these pressures, seven Western manufacturers still hold approximately 97 percent of Europe’s heavy-duty truck market, according to Mobility Global data. The industry remains divided over the decarbonization pathway, with some companies like Volvo simultaneously advancing electric, hydrogen, and biofuel-powered models. Proponents of hydrogen argue that fuel-cell trucks, which convert hydrogen into electricity, are better suited for heavy payload long-haul operations due to faster refueling times compared to battery electric trucks. Critics counter that the necessary hydrogen infrastructure is costly and batteries now offer sufficient range.
Franziska Cusumano, CEO of Mitsubishi Fuso Truck and Bus, highlighted the need for both technologies to meet global decarbonization goals. However, challenges persist for European manufacturers, including insufficient charging infrastructure, underdeveloped electricity grids, and cost disparities with diesel trucks. Despite higher diesel prices linked to Middle East tensions, electric trucks accounted for just 4.8 percent of new registrations in the EU during the first half of 2026, while diesel vehicles made up 92 percent, according to the European Automobile Manufacturers’ Association.
At the IAA event, European truckmakers urged the European Commission to delay by three years the enforcement of regulations mandating a 45 percent reduction in truck emissions by 2030 compared with 2019 levels. To meet these targets, electric trucks would need to capture around 35 percent of the market. Daimler CEO Karin Rädström described the targets as “absolutely existential,” warning that failure to meet them could result in hefty fines erasing a year’s worth of profits.
Meanwhile, industry leaders like Achim Puchert, CEO of Mercedes-Benz Trucks, expressed confidence in the face of growing competition, asserting that it “drives innovation.” The evolution of the European heavy truck market will therefore depend on balancing emerging technology adoption with competitive pressures from global players.