Structural Collapse! Major Markets See Hydrogen Fuel Cell Vehicle Sales Plummet by 91%
A recent warning from the South Korean research firm SNE Research indicates that the market for hydrogen fuel cell electric vehicles (FCEVs) is undergoing a “structural transformation” and is gradually moving towards decline. The company’s data reveals a significant drop in sales during the first three months of this year across the United States, Europe, and Japan.
According to SNE, sales in Europe fell by 91%, while the United States experienced an 86% decrease and Japan saw a 53.2% decline. This downturn is largely attributed to increasingly favorable policies for battery electric vehicles (BEVs) and the severe lag in hydrogen infrastructure.
During this period, only 39 FCEVs were sold across Europe, all of which were Toyota Mirai and Hyundai Nexo passenger cars. In the United States, only 31 FCEVs were purchased in the same timeframe. Overall, sales have dropped by 11.2% compared to last year, with only 2,119 units sold.
Notably, more than half of these sales (1,197 units) occurred in China, where all vehicles sold were commercial vehicles rather than passenger cars. The Chinese government has been implementing a decarbonization strategy for commercial vehicles that includes hydrogen and pure electric vehicles.
Despite these challenges, South Korea saw a 15% growth in FCEV sales during this quarter, primarily due to continued government support and strong sales of the Hyundai Nexo, even in the wake of some high-profile hydrogen station explosions at the end of 2024.
Globally, Hyundai sold 750 FCEVs this quarter, including commercial vehicles, significantly outperforming its competitor Toyota, which sold only 150 units of its Mirai and Crown FCEV models during the same period.
Hyundai recently announced plans to launch a new fuel cell vehicle named Initium, expected to go into mass production next year. However, SNE warns that the decline in global FCEV sales has been ongoing since 2022, and the latest figures are not a temporary anomaly.
The South Korean firm stated, “The persistent slump in the global fuel cell vehicle market is not a temporary fluctuation, but a structural transition. While major manufacturers like Hyundai and Toyota continue to invest in technology development, the market is steadily shifting towards pure electric vehicles. This transition is primarily driven by policy direction and infrastructure readiness.”
SNE further elaborated, “While South Korea and China continue to view the hydrogen industry as a strategic sector with national support, the United States and Europe are clearly prioritizing battery electric vehicles through legislation like the Inflation Reduction Act and carbon emission regulations. Consequently, fuel cell electric vehicles have been removed from the policy agenda. Along with the lack of hydrogen infrastructure, high vehicle costs, and ongoing maintenance expenses, FCEVs have lost their appeal in the consumer market.”
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/hydrogen-fuel-cell-vehicle-sales-plummet-91-amid-market-shift-towards-electric-cars/
