Why Are Hydrogen Vehicle Sales Plummeting in South Korea?
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Synopsis
The sharp decline in hydrogen vehicle sales in South Korea raises questions about the future of FCEVs in the market. With both domestic and export numbers plummeting, experts emphasize the need for government support and a stronger hydrogen infrastructure.
Key Takeaways
- Hydrogen vehicle exports fell by 70% in early 2023.
- Domestic sales are projected to hit their lowest levels in years.
- Hyundai Motor faces challenges with limited model availability.
- Experts stress the potential of hydrogen vehicles for future mobility.
- Free safety inspections for EVs are being implemented industry-wide.
Seoul, May 28 (NationPress) The hydrogen fuel cell electric vehicle (FCEV) market in South Korea is experiencing a significant decline this year, with both domestic and export figures dropping sharply due to insufficient demand, according to industry data released on Wednesday.
As reported by the Korea Automobile and Mobility Association (KAMA), only 18 hydrogen vehicles, encompassing both passenger and commercial types, were exported from January to April, marking a 70 percent decrease from the 60 units exported during the same period last year.
Domestic sales totaled 965 units for the mentioned timeframe, raising concerns that the yearly total may fall to its lowest levels in years, as highlighted by Yonhap news agency.
Hyundai Motor Co., which previously dominated the hydrogen vehicle market with models such as the Nexo and the Xcient commercial truck, is losing market share owing to limited model options and a lack of hydrogen infrastructure.
Exports reached a peak of 1,121 units in 2021 after the introduction of the Nexo in 2018, but they have since decreased. Domestic sales have also plummeted from a high of 10,328 units in 2022 to 4,707 in 2023 and 3,787 last year.
Despite the decline, industry experts assert that hydrogen vehicles are a pivotal technology for future mobility and call for more robust government backing.
"Though the global hydrogen car market is still relatively small, it possesses immense potential," stated Kim Pil-soo, a professor of automotive engineering at Daelim University. "It should be seen as a strategic investment for the future and bolstered through a comprehensive hydrogen value chain strategy."
In related news, major automotive manufacturers in South Korea, including Hyundai Motor, Kia, and Volkswagen, are offering complimentary safety inspections for all electric vehicle (EV) models as part of enhanced safety initiatives following concerns regarding EV fires, as reported by the transportation ministry.
This initiative encompasses all 14 automakers operating in the nation and was prompted by a significant fire incident involving a Mercedes-Benz EV last year, according to the Ministry of Land, Infrastructure and Transport.
Hyundai, Kia, Volkswagen-Audi, and Jaguar Land Rover are conducting free inspections throughout the year.
Stellantis began inspections in April, while KG Mobility Corp. and Renault Korea Motors will commence this month and continue through the end of the year.
Porsche and Polestar are slated to begin their services in June, with GM Korea, Tesla, and BMW joining in July, followed by Mercedes-Benz and Volvo in August.
The ministry indicated that these inspections will cover essential safety components, including the status of the high-voltage battery and its cooling system. Technicians will also inspect for any external damage, such as impacts to the battery’s underside, and perform repairs if any issues are detected.
Vehicles equipped with older versions of the battery management system will receive software updates for enhanced battery monitoring. The service will also include a recall verification to ensure all necessary safety measures are implemented.
Point of View
It's important to recognize the challenges facing South Korea's hydrogen vehicle market. While the current slump is concerning, the emphasis on sustainable technology and government support could pave the way for future growth. It's essential to remain optimistic and proactive in addressing these issues to align with national energy goals.
NationPress
22/07/2025
Frequently Asked Questions
What is causing the decline in hydrogen vehicle sales in South Korea?
The decline is primarily attributed to a lack of demand, limited model availability, and insufficient hydrogen infrastructure.
How much did hydrogen vehicle exports drop?
Exports of hydrogen vehicles fell by 70%, from 60 units last year to just 18 units this year.
What are industry experts saying about hydrogen vehicles?
Experts believe that hydrogen vehicles remain a crucial technology for future mobility and require stronger government support.
Are car manufacturers in South Korea addressing EV safety concerns?
Yes, major manufacturers like Hyundai, Kia, and Volkswagen are offering free safety inspections for all electric vehicles.
What safety components are included in the EV inspections?
The inspections cover key components such as the high-voltage battery, cooling system, and external damage checks.
