Hyundai Motor Co., the leading carmaker in South Korea, intends to establish its dominance in the worldwide eco-friendly market by releasing a next-generation hydrogen fuel cell electric vehicle (FCEV) NEXO crossover as early as the second quarter of 2025, following its introduction in 2018.
During the process of gathering input, Hyundai Motor has reportedly outlined to user groups and current customers what sets the new model apart from the current one, according to company sources on Sunday.
The automaker allegedly revealed enhanced features like over-the-air (OTA) software updates for the suspension and brake systems, as well as a larger fuel tank than the previous model of the redesigned NEXO. The company has finished developing the relevant technology and is now testing it.
An representative from Hyundai Motor stated, “We opened an event to listen to customers’ opinions on potential changes in the powertrain, infotainment, and appearance from the existing model.”
With the upcoming NEXO, Hyundai Motor hopes to resurrect the global FCEV market and solidify its leadership position in the industry.
FCEV Market Shrinks
According to market watcher SNE Research, sales of the NEXO worldwide more than half dropped to 4,709 units last year from 11,179 units in 2022 because Hyundai hasn’t released a revised version of the eco-friendly crossover since it was first revealed.
Despite being the leading competitor in the market, Hyundai Motor’s global FCEV market shares decreased to 34.7% in 2018 from 54.8% in 2022, according to SNE Research. Because of the strong sales of the Mirai sedan, Toyota Motor Corp., a competing company based in Japan, increased its market share to 26.6% from 17.9%.
The market for FCEVs fell by 30.2% globally last year.
Despite the decline, Chung Euisun, Executive Chairman of Hyundai Motor Group, stressed that hydrogen-powered cars are the way of the future during the Consumer Electric Show (CES) 2024, the largest annual tech trade event in the world, which took place in Las Vegas in January.
Earlier this year, Hyundai Motor acquired the fuel cell division of its sister company, Hyundai Mobis Co., which produced car parts and components. This move expedited the company’s strategy to develop hydrogen energy as its next major growth engine.
According to a source in the car business, “Hyundai Motor is expected to actively establish a hydrogen ecosystem with the NEXO.”