From Jan to July 2023, Global FCEV Market with a 9.6% YoY Degrowth
- Hyundai Motor Group took up 38.1% of global FCEV market share.
A total number of globally registered FCEVs sold from Jan to July 2023 was 9,619 units, recording a 9.6% YoY decline and degrowth.
(Source: Global FCEV Monthly Tracker – August 2023, SNE
Research)
By company, Hyundai Motors sold 3,662 units of NEXO and ELEC CITY combined, accounting for 38.1%of market share and staying at the top on the list. However, due to the continuous slowdown in sale of NEXO, it posted a 40.0% YoY degrowth. On the other hand, the sale of Mirai by Toyota, which had slowed down in the past, continued to be in an upward trajectory from this May. The market share gap between Hyundai Motors and Toyota was 8.1%p, a significant drop from the previous.
(Source: Global FCEV Monthly Tracker – August 2023, SNE
Research)
By country, owing to the decline in the sale of NEXO, Korea saw a 38.7% YoY reduction in its market share. However, by taking up 35.2% of the global market share anyway, Korea remained at the leading position. China took up more than 30% of the entire market share based on its continuous growth mainly with hydrogen commercial vehicles. The US, where Toyota’s Mirai is sold most, also posted a growth together with China.
The entire world showed a strong will to invest in achieving carbon neutrality. In addition, the global OEMs have been in a fierce competition with their price reduction strategies as the electric vehicle market has reached economies of scale. On the other hand, the FCEV market continued to experience a degrowth. This can be interpreted as being affected by several factors hindering the growth of hydrogen car market such as the shortage of hydrogen car charging infrastructure, an increase in hydrogen charging cost, and limited options for consumers.
According to the government budget for next year announced on August 29, the Ministry of Environment cut back on budget for distribution of hydrogen cars and supporting the installation of hydrogen charging stations. It seems that the Ministry took consideration of poor distribution of hydrogen cars and a limited option of hydrogen passenger car in Korea – Hyundai’s NEXO. However, only 70% of the 2022 budget for distribution of hydrogen cars was executed, and the cut back on the 2024 budget was not so big even though the goal of hydrogen passenger vehicle distribution was lowered. In this regard, the domestic sale of Hyundai NEXO is expected to maintain the status quo for a while.