With 123 electric buses already in operation and a further 21 due this year, around 75 per cent of the fleet will soon be electrified. A key factor in this progress has been the efficient use of existing infrastructure and a pragmatic charging strategy. To reduce costs, VAG relies on cable-based depot charging rather than pantographs or opportunity charging in the city. By converting a staff car park and adapting an existing parking hall, the operator created additional capacity for electric buses and charging infrastructure in a cost-efficient way.In the technology debate, Dahlmann-Resing takes a clear stance against hydrogen for urban bus operations. While hydrogen may have a role in other applications, he considers it inefficient for local public transport. Instead, he highlights ongoing advances in battery technology, which already enable ranges of more than 350 kilometres and are expected to improve further in the coming years.At the same time, the VDV Vice President criticises current funding mechanisms and persistently high vehicle costs. He calls for a shift away from project-based subsidies towards a broader approach that ensures all operators receive support. His key message: anyone applying for an electric bus should also receive a grant. Without more predictable funding, he warns, large-scale electrification of bus fleets will be difficult to achieve.The interview is available as a video in German. You can activate subtitles on YouTube, or read the full transcript below for convenience.We are currently seeing diesel prices of two euros per litre, or even higher. Ideal conditions for switching to electric drive. So focusing on this topic was quite a good idea, wasn’t it?Absolutely. We have not regretted this decision for a single moment. We now operate 123 vehicles. A further 21 will be added this year, making 75 per cent of our fleet to electric.And especially in times like these, that is a strong position to be in. You celebrated the milestone of your 100th electric bus in May 2025, just over a year ago. Looking back, how do you assess this transformation? And what were your biggest pain points?Overall, things have gone quite well for us. Of course, it was not just about procuring the buses – that is actually the relatively straightforward part. The tenders we received were solid, and we consistently had a sufficient number of bids, as we issued contracts in larger lots. Naturally, infrastructure is also part of the equation, and that proved somewhat challenging, as we had to work within the constraints of existing space.We converted an existing staff car park into a larger e-bus depot, creating a total of 40 additional parking spaces. This depot enabled us to carry out the transformation within the existing parking hall, which we subsequently rebuilt – effectively turning it from a closed hall into a carport.We removed walls, partly for fire safety reasons, and were able to extend the bus depot slightly forward. This allowed us to maintain the same parking capacity for electric vehicles within the former hall. As a result, we are well-positioned and managed the transition in a very cost-efficient way.And you have already electrified a large share of the parking spaces, even though not all electric buses have been delivered yet. What was the reasoning behind making that upfront investment?We have not electrified all parking spaces, but we have gone beyond what is currently required in order to be prepared for future needs. This also allows us to offer capacity to subcontractors if necessary, for whom the transition is significantly more challenging than for us.Why did you opt for cable-based charging at the depot? Other solutions would have been possible.It is a straightforward and cost-effective approach. We avoid the need for pantographs on the vehicles, and we believe this setup is sufficient for operational requirements in Nuremberg.One of our readers commented on the milestone of 100 buses, which I found quite interesting: “Thank you, VAG, for consistently focusing on battery-electric buses and not giving in to the temptation to experiment with hydrogen.” What would your response be?That comment is absolutely justified. Hydrogen is not the right technology for local deployment in this context. It may have a role in long-distance applications or where significantly greater ranges are required. However, we have always said that battery technology will continue to improve – and that is exactly what we are seeing.Today, we achieve ranges of 350 kilometres and more under favourable conditions. In winter, it is still somewhat less, but this will not be the final state of development. I expect further progress in battery technology over the next ten years.During our recent trip to China on autonomous driving, manufacturers there spoke of ranges of up to 1,000 kilometres. That is more than sufficient for urban transport. So why opt for hydrogen, which is significantly less efficient? From my perspective, that does not make sense.Some transport operators in Germany are still pursuing hydrogen, although a few are already phasing it out again. So your clear position is to focus on batteries, also for cost reasons. Does it pay off in your case?It is not for me to advise other operators. Local conditions always play a decisive role. If hydrogen can be produced locally at low cost, rather than delivered expensively, it may be a viable option.However, one must consider whether local production can support an entire fleet and how efficient the overall system is. For Nuremberg, the answer is clear: it does not pay off. Battery technology is simply more advanced at present, including on the vehicle side.Speaking of battery technology: MAN now produces batteries for buses and trucks in Nuremberg. Your first batch of e-buses came from MAN, but the current batch is from Daimler Buses. Why not rely exclusively on MAN?We operate a large MAN fleet and are satisfied with the vehicles. In fact, the 21 buses arriving this year will again come from MAN. Ultimately, this is determined through tendering. We create competition and award contracts to the most economical bid.That is the objective, and we benefit from having multiple manufacturers. It allows us to compare concepts, assess which vehicles perform well and which less so, and use these insights to drive further improvements.How do you view bus prices? From the outside, it seems that despite expected economies of scale, prices are not really falling, possibly due to generous subsidies. What is your experience in practice?From my perspective, vehicles are still too expensive. Prices need to come down significantly. I expect this to happen once Chinese manufacturers enter the German market more strongly.Prices are clearly too high. Of course, manufacturers must recoup initial investments, and they are aware of available subsidies, which can be factored into pricing. Nevertheless, prices urgently need to decrease.For operators planning to electrify their fleets from 2026 onwards – especially in light of new funding programmes – what are your top three recommendations? What mistakes should they avoid?Depot charging is key. There is no longer a need to rely on en-route charging when starting from scratch. Installing charging infrastructure across the city is typically far more expensive than concentrating it at the depot.Current and future ranges are sufficient to cover urban routes reliably. That would be my first recommendation.Second, tendering. Competition ultimately drives cost advantages. It is important to define clearly what matters most in the tender – range, for example, or other criteria.Third, make the best possible use of existing infrastructure to avoid costly new construction wherever feasible.When will all city buses in Nuremberg be fully electric, or is that not your goal?It is very much our goal. Our strategy is full electrification, which we aim to complete by the early 2030s. We are transitioning within the normal replacement cycle: diesel buses are retired after 12 to 14 years and replaced with electric models. However, this depends on continued funding support under current conditions, as we cannot finance these vehicles entirely on our own.That brings us to funding. Electrification currently depends on subsidies. Do you see ways to change this?At present, given current price levels, it is difficult to manage without funding. However, I believe the way funding is currently structured is unfair, as grants are awarded on the basis of project applications. As a result, some companies receive support while others miss out—and those that do not receive funding are unable to proceed with the transition.I would therefore like to see a change in approach, including from the Federal Minister of Transport. Anyone who applies for an electric bus should also receive a grant. Whether the level of support needs to remain as high as it is today can certainly be debated.It is also possible to discuss gradually reducing funding levels over the coming years. However, in the near term, financial support will still be necessary.These proposals are important, as electrification needs to scale more broadly. Battery-electric buses currently account for around 40 per cent of new registrations – or 50 per cent if hydrogen is included – so there is still significant ground to cover.In the overall fleet, the share is much lower. Germany currently has around 5,000 electric buses out of a total of 50,000. That leaves 45,000 vehicles still to be converted. Even with the federal government approving another 1,800 buses, progress at the current pace will take considerable time. That is why I advocate reforming the funding system.With the right framework, the transition to electric buses will succeed. Mr Dahlmann, thank you very much for the interview, and all the best for your fleet in Nuremberg.
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