Key Points:
- Hyundai Motor plans to launch a next-generation NEXO hydrogen fuel cell electric vehicle model in the second quarter of 2025.
- The new NEXO will feature enhancements such as a larger fuel tank, an advanced driver assistance system, and over-the-air software upgrades.
- Despite declining global NEXO sales, Hyundai remains committed to hydrogen-powered vehicles as the future of automotive technology.
- The acquisition of Hyundai Mobis Co.’s fuel cell business underscores Hyundai’s strategic focus on fostering hydrogen energy.
Hyundai Motor Co., South Korea’s leading automaker, is gearing up to unveil a next-generation model of its hydrogen fuel cell electric vehicle (FCEV) NEXO crossover in the second quarter of 2025. Following the NEXO’s initial launch in 2018, the move aims to solidify Hyundai’s position as a global eco-friendly vehicle segment leader.
Recent reports indicate that Hyundai Motor has engaged with existing customers and user clubs to gather feedback on the upcoming model’s enhancements. The company is set to introduce several improvements, including a larger fuel tank, advanced driver assistance system (ADAS), and over-the-air (OTA) software upgrades for suspension and braking systems. With the development phase nearing completion, Hyundai Motor is entering the final stage of testing related technology.
An official from Hyundai Motor emphasized the importance of customer input, stating, “We opened an event to listen to customers’ opinions on potential changes in the powertrain, infotainment, and appearance from the existing model.”
Hyundai Motor’s strategic goal is to revitalize the global FCEV market with the next-generation NEXO while consolidating its dominance in the sector. However, the global sales of the NEXO experienced a decline last year, dropping to 4,709 units from 11,179 units in 2022, according to market tracker SNE Research. Despite Hyundai Motor remaining the top player in the FCEV market, its market share decreased to 34.7% in 2023 from 54.8% in the previous year. In contrast, its Japanese competitor, Toyota Motor Corp., saw increased market share, attributed to robust sales of the Mirai sedan.
The overall global FCEV market contracted by 30.2% in 2023, reflecting industry challenges. Nonetheless, Hyundai Motor Group’s Executive Chairman Chung Euisun emphasized the significance of hydrogen-powered vehicles for the future during the Consumer Electric Show (CES) 2024 in January.
Hyundai Motor has taken proactive steps to foster hydrogen energy as its next growth driver by acquiring its auto parts and components-producing sibling, Hyundai Mobis Co.’s fuel cell business earlier this year. With the upcoming launch of the next-generation NEXO, Hyundai Motor aims to establish a robust hydrogen ecosystem and reinforce its commitment to sustainable mobility solutions.
