Hyundai Motor Company’s second-generation hydrogen fuel cell SUV, the All New Nexo, reached a significant milestone recently with 1,001 units sold in South Korea, marking a 203% year-on-year increase.
This single month of sales exceeded the vehicle’s cumulative first-half 2024 total of 725 units, underscoring a renewed wave of consumer interest in hydrogen mobility—a segment still overshadowed by the rapid rise of battery electric vehicles (EVs).
The surge in contracts, with more than 1,000 signed in early August and over 400 on peak days, reflects a strong “new model effect.” However, whether this momentum represents sustained market traction or short-term enthusiasm remains unclear. The repurchase rate among first-generation Nexo owners appears pivotal. Many have cited improvements in output and driving dynamics as deciding factors, suggesting that existing hydrogen users are fueling much of the early success rather than new adopters.
Hyundai increased the Nexo’s fuel cell system output to 94 kW, paired with a 150 kW electric motor delivering 204 horsepower and acceleration from 0–100 km/h in 7.8 seconds. These figures position the Nexo closer to mainstream EV performance standards but do not represent a step change compared to leading battery models. Range remains the hydrogen vehicle’s strongest advantage: with 6.69 kg of hydrogen storage, the Nexo achieves up to 720 km per tank, verified under South Korea’s Ministry of Trade, Industry and Energy protocols, and requires only five minutes for refueling. This compares favorably to EVs, which despite improving charging speeds still average 30 minutes for substantial recharge.
Practicality and Comfort: Small Gains, Market-Relevant
Interior refinements address consumer priorities for long-distance driving. Cargo space expanded from 461L to 510L, rear legroom grew by 41 mm, and backrest adjustments improved passenger comfort. The integration of Hyundai’s new Tunable HRS suspension is positioned as a differentiator for ride quality, but the long-term impact on ownership experience remains to be tested against user feedback.
Hyundai has aligned the Nexo with advanced driver-assistance system (ADAS) benchmarks found in high-end EVs. Highway Driving Assist 2, multi-collision prevention braking, and driver monitoring systems are included, alongside consumer-oriented technologies such as Bang & Olufsen audio, panoramic “Vision Roof,” and bi-directional V2L capability. While these features enhance perceived value, they largely follow trends already established in the EV sector rather than creating unique hydrogen-specific advantages.
Hyundai is attempting to offset hydrogen’s adoption hurdles with aggressive financing. The “Nexo Easy Start” plan reduces upfront costs by deferring up to 50% of residual value and guaranteeing used-car buyback rates as high as 68% after three years. When paired with government subsidies of roughly ₩30 million, consumers can access the Nexo for an estimated ₩220,000 per month over 36 months. The inclusion of hydrogen fueling subsidies further reduces operating costs, signaling Hyundai’s recognition that affordability—rather than technology alone—remains critical for scaling hydrogen adoption.
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