In 2024, Hyundai’s domestic sales of the NEXO hydrogen fuel cell vehicle plummeted to approximately 2,751 units, a stark contrast to the 10,164 units sold in 2022—a decline exceeding 70% over two years.
In response to this downturn, Hyundai is offering a 5 million won ($4,200) discount on NEXO purchases in March 2025, a departure from previous promotions that varied discounts based on production dates. Additional incentives include a 1 million won ($840) trade-in discount for customers selling their vehicles to Hyundai Certified Used Vehicles, a 300,000 won ($250) discount for owners of vehicles over 10 years old, and a 100,000 won ($85) discount through a partnership with Benepia. New customers can receive a 150,000 won ($125) discount, while existing customers are eligible for a 100,000 won ($85) discount. Other benefits encompass a 400,000 won ($335) pre-use of Blue Members’ Points, a 200,000 won ($170) discount for purchasing an exhibition car, and up to 500,000 won ($420) through the Blue Save-Auto program. Collectively, these promotions can amount to a maximum discount of 7.5 million won ($6,300).
When combined with government subsidies for fuel cell electric vehicles (FCEVs), which range from 22.5 million won ($18,900) to 35 million won ($29,400) depending on the region, the total reduction in purchase price can reach up to 42.5 million won ($35,700). Given the NEXO’s base price of 69.5 million won ($58,400), the effective purchase price could be as low as 27 million won ($22,700).
These substantial discounts raise questions about Hyundai’s strategy and the broader market dynamics. The significant drop in NEXO sales suggests challenges in consumer adoption of hydrogen fuel cell technology, possibly due to factors such as limited refueling infrastructure, competition from battery electric vehicles, or market perceptions about hydrogen as a viable alternative fuel.
Hyundai’s aggressive pricing strategy may be an attempt to stimulate demand and address these challenges. However, the effectiveness of such discounts in reversing the downward sales trend remains uncertain. Hyundai Nexo is the only FCEV on sale in Korea and is expected to launch its next-generation model in the second half of this year.
