Global Hydrogen Fuel Cell Vehicle Sales Slump 30%, Hyundai World No. 1, China Fastest Growing!

Global Hydrogen Fuel Cell Vehicle Sales Slump 30%, Hyundai World No. 1, China Fastest Growing!

Global hydrogen-fueled vehicle sales fell more than 30% year-on-year in 2023, falling into a severe slump. This significant drop is largely due to low sales at Hyundai, which ranks No. 1 in global hydrogen-fueled vehicle sales and holds the majority of the hydrogen-fueled vehicle market share.

There were 14,451 new registrations of hydrogen-fueled vehicles globally last year, a decrease of 30.2% year-on-year. This decreasing trend is cause for concern, and is the first time since 2020 that hydrogen-fueled vehicle sales have slowed, according to research data from new renewable energy specialist SNE.

Hyundai Motor, which dominates the global ranking of hydrogen-fueled vehicle sales, sold 5,012 hydrogen fuel cell-powered Nexo and Electricity buses in 2023, accounting for a third of the global market. This is speculated to be a 55.9% decrease from the previous year's 11,354 units, and overall more affected by the market downturn.

In stark contrast to Hyundai's performance, sales of Chinese-made hydrogen commercial vehicles amounted to 5,362 units in 2023, a modest increase of 2.4% year-on-year. With this growth momentum, Chinese commercial vehicles hold a 37.1% market share, making them the new leader in the global hydrogen-fueled vehicle market. Toyota Japan also sold 3,839 units in 2023, with a market share of 26.6%, up 3.9% year-on-year. This growth is a good reflection of the changing mechanics of the global hydrogen fuel vehicle market.

Hydrogen-fueled vehicles have experienced a significant decline in attractiveness due to a number of factors, including rising fuel charging costs, accidents caused by defective hydrogen fuel, and inadequate hydrogen fuel charging infrastructure. These issues have had a significant impact on the hydrogen-fueled vehicle market to buck the trend.

The Chinese government is actively working to expand the popularization of hydrogen-powered vehicles and the development of infrastructure through the Medium- and Long-Term Development Plan for the Hydrogen Energy Industry (2021-2035). The will to accelerate the commercialization of hydrogen energy can be seen.

The decrease in the global hydrogen fuel vehicles market by 2023 reflects the complexity of market dynamics, regional performance, and industry challenges. Although specific regions, such as China, are showing growth trends, hydrogen-fueled vehicles face significant barriers to development and lowering production costs as an overall sustainable means of transportation, and must be able to find ways to reduce costs if they are to grow in the long term.