Hyundai is not giving up on hydrogen passenger cars, but it admits finding enough buyers is the biggest hurdle for the technology. The company is still evaluating the next-generation fuel cell vehicle, said Scott Nargar, senior manager of Future Mobility and Government Relations at Hyundai Australia.
“Hydrogen is not dead for passenger cars,” Nargar said. He added that the next fuel cell vehicle is still in the evaluation stage, but the main question is whether there will be enough customers willing to buy it. Hyundai already has experience with the Nexo - a crossover powered by a hydrogen fuel cell. In Australia, the second-generation model has received certification under local vehicle design rules, and the company has said it plans to introduce it in 2026. However, the car has not yet been launched.
It is not clear whether the car Hyundai is evaluating is the current Nexo or a new hydrogen model that has not yet been shown publicly. Nargar points out that the technology is not cheap like electric vehicles, and for trucks, the costs also remain significantly higher than for internal combustion engine trucks and electric trucks.
The other problem is the network of charging stations. Unlike electric vehicles, which can be charged at home, hydrogen vehicles depend on a dedicated infrastructure that is expensive to build and maintain. This limits consumer choice and makes owning such a car difficult in many markets. Toyota is also developing hydrogen cars, most notably with the Mirai sedan. BMW sees fuel cells as a complement to, not a replacement for, electric vehicles, and plans to introduce the iX5 Hydrogen later this decade. In 2024. Toyota and BMW have strengthened their partnership to develop a third-generation fuel cell and reduce production costs.
Hyundai believes hydrogen could play a role in future transportation, especially in countries with suitable natural resources to produce hydrogen from renewable energy. According to Nargar, Australia has the sun and wind, but the right infrastructure will need to be built.
Other manufacturers are taking a more cautious stance. Mercedes has stopped developing hydrogen passenger cars, Honda has stopped production of the Clarity Fuel Cell, and Volkswagen has cooled its interest in the technology. Stellantis ended its hydrogen program in 2025 and canceled plans for hydrogen cargo vans. General Motors has also abandoned development of the next generation of fuel cells and directed its resources to electric vehicles.
Hyundai, Toyota and BMW continue to support the technology as the auto industry increasingly shifts to battery electric vehicles. For hydrogen, the future remains possible, but first enough customers must be found willing to pay for a car dependent on a limited charging network.