Hyundai’s Hydrogen Strategy Gains Unexpected Momentum

While rivals pull back, Hyundai’s fleet-driven Nexo sales surge, showing hydrogen’s niche strength in the push for cleaner transport.

27 Jun 2025

Europe’s hydrogen car market has stalled. Registrations in Germany dipped to just five vehicles over two months in early 2025, casting doubt on fuel cell cars’ future. Many automakers have shifted focus to battery electric models. Yet Hyundai is taking a different path.

Global sales of its Nexo climbed 11.6% in Q1 2025. That rise stands out in a slow-moving segment and hints at untapped potential for hydrogen vehicles.

Hyundai owes its edge to a fleet-first plan. Instead of chasing individual buyers, the company targets government fleets, delivery services and green-focused partners. It backs every vehicle with extended warranties, comprehensive maintenance and help setting up refueling solutions. This package appeals to organizations that can guarantee regular use and have access to hydrogen pumps.

Other firms are shoring up hydrogen’s backbone. On January 28, 2025, Toyota teamed with energy giant ENGIE and refueling specialist HRS to roll out more affordable hydrogen stations across Europe. Their aim is clear, ease the cost and access barriers that have blocked mass adoption.

In California, Honda quietly leases its CR-V e:FCEV in limited numbers. The automaker is also putting the SUV through its paces at the 2025 Pikes Peak International Hill Climb. These steps aren’t about big sales today. They’re about refining the tech and gathering real-world data for tomorrow.

Still, challenges remain. Hydrogen stations are few and far between. The fuel itself carries a premium price tag. But for high-mileage fleets, quick fill-ups and long driving ranges are major perks.

“The consumer market isn’t there yet, but focused deployment is proving effective,” notes a European clean mobility analyst. “Hyundai’s results are a case study in strategic adaptation.”

As legacy carmakers rethink their hydrogen plans and infrastructure expands gradually, fuel cell vehicles may never hit the mass-market sweet spot. Instead, they’re carving out valuable niches where fast refueling and reliable range offer clear advantages. Hyundai is showing that those niches might be larger than many assumed.