Hyundai Motor is targeting the Japanese taxi market with its hydrogen fuel cell vehicle, the All-New Nexo. The company aims to expand the adoption of hydrogen taxis by promoting the vehicle's relatively long driving range and durability compared to electric vehicles.
On October 8, Hyundai announced that it is exploring additional supply of the All-New Nexo to Japanese taxi operators. Since launching the Nexo in Japan in April, the company has been broadening its footprint in the taxi sector.
The Nexo is making its mark in Japan's hydrogen fuel cell vehicle market. According to the Japan Automobile Dealers Association, 20 units of the All-New Nexo were sold from April to August, including taxis, capturing approximately 11% of the passenger hydrogen fuel cell vehicle market, which totals 183 units. Including units set to be delivered, the total rises to 35. Of these, 22 units have been supplied or are set to be supplied to taxi operators in Tokyo and Aichi regions.
The Japanese taxi market is known for its high barriers to entry for foreign car brands, with local manufacturers having long dominated the sector. Currently, Toyota holds a 76.5% share (140 units) of the hydrogen fuel cell vehicle market in Japan, while Honda accounts for 12.6% (23 units).
It remains to be seen whether the long-range, durable, and efficient Nexo can compete effectively in the taxi market. The All-New Nexo features an improved fuel cell system with a rated output increased by 11% to 94 kW. It offers a maximum driving range of 720 km on a single charge domestically, and up to 1,014 km according to Japan's WLTC certification. Hyundai explains that this can alleviate charging burdens for the Japanese taxi industry, which typically sees annual driving distances of about 50,000 to 100,000 km. The Japanese model also includes a Vehicle-to-Home (V2H) function that allows the vehicle to supply power externally as a standard feature.
The Japanese government's and local authorities' policies promoting hydrogen fuel cell vehicles are also positively impacting the expansion of the taxi market. Tokyo aims to support the introduction of 600 hydrogen fuel cell taxis by 2030, providing assistance for fuel costs. Aichi Prefecture is also pushing for the introduction of 250 hydrogen fuel cell taxis during the same period, offering a purchase subsidy of 3.5 million yen per vehicle and a fuel cost subsidy of 576 yen per kg of hydrogen.
A Hyundai official stated, "The Japanese taxi industry, which is sensitive to durability and convenience, is showing interest in the All-New Nexo. We believe that the Nexo taxi will enhance accessibility to imported passenger cars and hydrogen fuel cell vehicles, leading to positive evaluations."
Meanwhile, Hyundai is committed to expanding the adoption of hydrogen vehicles in Japan. During the Asian Games, the company collaborated with local taxi operators to provide seven Nexo taxis as official vehicles for the South Korean archery national team. The vehicles were deployed at a dedicated hydrogen taxi stand at Nagoya Station, and a ride experience program was conducted for hotel guests.
* This article has been translated by AI.
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