SNE Research: ‘hydrogen car sales plummeting worldwide’

According to data from South Korean market watcher SNE Research, hydrogen car sales are dropping fast worldwide. Fuel cell electric vehicles (FCEVs) experienced a marked decline in the first half of 2024, with sales falling by 34.1% compared to last year. The challenges for the FCEV industry keep growing.

SNE Research says only 5,621 hydrogen vehicles were sold worldwide since the beginning of the year, a drop of roughly one-third compared to 2023. This decline comes after several years of growth, culminating in a peak of 20,704 vehicles sold in 2022. However, one year later, sales had already decreased by 20.7%, and this year’s trend highlights a further contraction of this niche category.

Toyota Crown: a beacon of hope?

Hyundai Motor Company remains the leader in the FCEV market, selling 1,836 units of its Nexo and Elec City models. This is a modest success as the Nexo is older than the competitor models, Mirai and Crown, from hydrogen advocate Toyota. However, for Hyundai, this number also reflects a significant 42.6% decrease from the previous year, primarily due to declining sales of the Nexo in South Korea, Hyundai’s home market.

As the second major player in the FCEV passenger car market, Toyota sold 1,284 units of its Mirai and Crown models, representing a 44.9% year-on-year decline. The Mirai, once a flagship hydrogen vehicle, saw its sales plummet, particularly in the US market, where it recorded an 82.4% drop and faces two lawsuits from dissatisfied owners.

Meanwhile, the Toyota Crown experienced a resurgence in Japan, with sales more than doubling to 384 units, marking a 117.8% increase from the previous year.

Chinese automaker Haima entered the FCEV market with its Haima 7X-H, a hydrogen electric vehicle based on the Haima 7X MPV. However, sales were minimal, with only a few units delivered. Other Chinese manufacturers maintained steady sales within the commercial vehicle sector, which has become the dominant force in China’s FCEV market. The trend underscores how light and heavy-duty commercial vehicles seem to be the go-to solution for hydrogen as a future energy carrier for clean mobility.

Prioritizing light commercial vehicles

South Korea, which aims to become the world’s first and biggest hydrogen economy, saw its market share decline by 41.8%, now accounting for just 31.0% of the global FCEV market. The domestic market struggled with fluctuating hydrogen prices, rising charging costs, and a lack of infrastructure.

In contrast, China and Japan recorded continued growth in their respective FCEV markets. With 440 units sold, Japan surpasses the United States in hydrogen vehicle sales.

SNE Research attributes the sharp decline to several vital factors but filters out the price of hydrogen mentioned above and inadequate infrastructure, which hinder consumer adoption of hydrogen vehicles.

Additionally, the slow rollout of new models and a lack of encouraging developments in the market have further dampened growth prospects. The South Korean government has announced plans to shift its focus toward expanding the distribution of hydrogen-powered commercial vehicles rather than passenger cars.

The sluggish sales figures come on top of several drawbacks for the hydrogen alternative to battery-powered passenger cars. Last year, French rising star Hopium threw in the towel after showcasing its luxury four-door Machina on hydrogen.

At the 2024 Olympic Games in Paris, Toyota faced criticism over the Mirai FCEV, which was selected as the ambassador vehicle for the event. A group of scientists called green hydrogen a “derailment of the games’ green credibility.” But even for the transport sector, the hurdles are difficult to overcome. US hydrogen truck maker Hyzon has almost burnt all its cash and tiptoes on the brink of bankruptcy.