Seoul, May 28 || South Korea's hydrogen fuel cell electric vehicle (FCEV) sector is facing a sharp downturn this year, with both domestic sales and exports falling significantly amid a lack of demand, industry data showed on Wednesday.
According to the Korea Automobile and Mobility Association (KAMA), only 18 hydrogen vehicles, including both passenger and commercial models, were exported from January to April, down 70 percent from 60 units a year ago.
Domestic sales came to 965 units over the cited period, raising concerns that the annual tally may dip to the lowest in years, reports news agency.
Hyundai Motor Co., which had led the global hydrogen vehicle market with models like the Nexo and the Xcient commercial truck, is losing momentum due to limited model availability and a lack of hydrogen infrastructure.
Exports peaked at 1,121 units in 2021 following the launch of the Nexo in 2018 but have since declined. Domestic sales also fell from a high of 10,328 units in 2022 to 4,707 in 2023 and 3,787 last year.
Despite weakened sales, experts say hydrogen vehicles remain a key future mobility technology and call for stronger government support.
"The global hydrogen car market is still small but holds great potential," said Kim Pil-soo, professor of automotive engineering at Daelim University. "It should be viewed as a next-generation investment and supported through a broader hydrogen value chain strategy."