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The 2024 Nexo. (courtesy of Hyundai Motor)

A total of 9,619 hydrogen fuel cell electric vehicle sales were registered around the world between January and July 2023, a decrease of 9.6% from the same period in 2022.

The world’s top-selling hydrogen vehicles, Hyundai Motor’s Nexo and Elec City, sold a total of 3,662 units. Hyundai Motor held on to top market share, but it declined to 38.1% from 57.3% during the same period last year.

A report on the global hydrogen vehicle market from January to July published on Monday by the market research organization SNE Research showed negative growth for hydrogen vehicle sales compared with last year.

The organization interpreted the trend as reflecting “factors inhibiting market growth, including a lack of hydrogen vehicle charging infrastructure, the rising costs of hydrogen charging, and the restricted hydrogen vehicle options for consumers.”

In terms of individual companies, Hyundai’s Nexo showed poor sales, which shrank by 40% compared with the same period in 2022. While 6,102 vehicles were sold in the first half of 2022, just 3,662 were sold in 2023.

In contrast, sales of the Toyota Mirai have shown continued growth since May 2023, reaching a 30% market share. As a result, the market share gap between the two companies has shrunk to 8.1 percentage points.

By country, South Korea experienced a drop in its market share amid the shrinking sales of the Hyundai Nexo. But at 35.2%, it still boasted the highest percentage of hydrogen vehicle use. China has also been experiencing steady growth, especially for hydrogen-powered commercial vehicles.

The 2024 government budget announced on Aug. 29 included slight drops from 2023 levels in the Ministry of Environment budget for hydrogen vehicle use promotion and support for the building of hydrogen charging stations.

But SNE Research observed, “Only 70% of the 2022 hydrogen vehicle promotion budget was used, and since the budget reduction is not large in spite of the reduced hydrogen passenger vehicle promotion targets, sales of the Hyundai Nexo appear likely to remain at their current level in the domestic market for the time being.”

By Choi Woo-ri, staff reporter

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