Navigating the shift: Key takeaways from Europe’s mega commercial vehicle show

Every two years, the largest commercial vehicle truck show happens in Hannover, Germany. This year’s IAA show was rich in technology and global presence.

An all-of-the-above menu of powertrain solutions was displayed by suppliers, most of them exhibiting several options, such as battery electric, hydrogen, hybrid, alternative fuel, and diesel efficiency solutions. Chinese OEMs are also attempting to enter the market. All of this creates a major disruption to traditional diesel-powered vehicles.

What is driving all of this? As we Americans have seen deregulation of greenhouse gas standards and now focus on improving efficiency and lowering operating costs, Europe and other regions are focusing on decarbonization. More specifically, Europe has very stringent carbon dioxide reduction initiatives. Figure 1 illustrates these standards.

The European Union has set standards to reduce carbon dioxide relative to a 2019 baseline. Each OEM needs to reduce its vehicles' aggregate carbon dioxide emissions. Most have met the 2025 standard, which requires a 15% reduction. The challenge comes in 2030, 2035, and 2040. These are very stringent standards and will require an OEM to offer a mix of solutions.

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