Hyundai Motor has surpassed 50,000 cumulative sales of hydrogen fuel cell vehicles in South Korea, and Kia is now entering hydrogen vehicle production, accelerating the expansion of the Hyundai Group's hydrogen mobility ecosystem. Experts emphasize the need for effective subsidy implementation and the expansion of charging infrastructure to maintain global market leadership and enhance industrial competitiveness.
As of last month, Hyundai has sold a total of 50,262 hydrogen vehicles in South Korea, including 46,507 passenger cars (Nexo) and 3,755 commercial vehicles (Elec City, Universe, and Xcient).
The domestic hydrogen vehicle market began to take shape with the launch of the Nexo in 2018, focusing initially on individual consumers in the passenger segment. Since 2019, the market has expanded into the commercial sector, aligning with government policies for eco-friendly bus transitions at the local level. According to market research firm SNE Research, Hyundai holds approximately 70% of global hydrogen vehicle sales as of the first half of 2026, maintaining a dominant position.
With Kia now pursuing hydrogen vehicle production, its influence is expected to grow. Recently, Kia's labor and management agreed to add a hydrogen variant to the upcoming Carnival model during a job security committee meeting. Production of the Carnival hydrogen vehicle is set to begin at the Gwangmyeong Plant in 2029, marking Kia's first foray into hydrogen vehicle manufacturing.
The expansion of hydrogen vehicle adoption by Hyundai Group is significant for enhancing the competitiveness of the supply chain and creating jobs. Hydrogen vehicles utilize approximately 20,000 components, which allows existing internal combustion engine parts manufacturers to leverage their precision processing, assembly, and material technologies. The localization rate of key components for the Nexo currently exceeds 90%, supported by a stable supply chain with over 60 partner companies.
Industry insiders believe that matching national and local subsidies is essential for market expansion. Even if the central government secures funding for hydrogen vehicle subsidies, delays in vehicle distribution can occur if local governments do not allocate sufficient funds.
As of the end of September, out of the 6,000 hydrogen passenger vehicles funded by the national government this year, local matching funds accounted for 5,093 vehicles (84.9%). For commercial vehicles like hydrogen buses, the local matching amount is about 1,270 vehicles (70.6%) against the national allocation of 1,800 vehicles, indicating a larger gap. The declining execution rate could lead to budget cuts in the following year, potentially stifling market growth. In fact, the proposed budget for hydrogen vehicle subsidies in 2027 has been reduced by 23%, from 576.2 billion won to 445.7 billion won, due to poor execution rates.
There is also a pressing need to expand charging infrastructure. Currently, there are 250 hydrogen charging stations (commercial) and 497 chargers in South Korea. In comparison, there are 10,646 gas stations and over 539,000 electric vehicle chargers nationwide, indicating that hydrogen charging infrastructure remains in its early stages.
An industry representative stated, "To sustain the hydrogen ecosystem, it is crucial that passenger vehicles, commercial vehicles, and charging networks develop in a balanced manner. It is important to create an effective policy environment that allows allocated budgets to be executed without constraints, leading to the nurturing of domestic small and medium-sized enterprises and job creation."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.