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Hyundai’s hydrogen drive could be a million-dollar worth predicament

Hyundai’s hydrogen drive could be a million-dollar worth predicament
Hyundai’s hydrogen drive could be a million-dollar worth predicament

Hyundai Motor Group has long been making heavy investments in its electrification efforts, however, there is yet to be a breakthrough in its hydrogen drive in the past four years, especially amidst indefinite delays in new hybrid model launches.

The South Korean automotive giant has also suspended plans to develop its next-generation hydrogen fuel cell SUV called Nexo, which was initially scheduled to be unveiled next year after making a highly publicized debut in 2018. But the vehicle has got a lukewarm reaction given its high pricing, lack of infrastructure, and delivery delays.

Moreover, Hyundai has managed to sell less than 10,000 Nexos since April last year as compared to 120,000 and 33,000 worldwide as well as local sales respectively of the fully electric Ioniq 5 compact. Even Hyundai’s luxury brand Genesis has indefinitely postponed its first hydrogen fuel cell model, which was earlier expected to be launched in 2025.

Experts claimed that Hyundai is likely to have hit a roadblock in its efforts to make a compact and more powerful fuel-cell power source. The company was expected to complete a third-generation fuel cell battery system by the year 2023, which would reduce the overall size by 30%.

Hyundai had also planned to cut the overall price tag by at least half while improving its product competitiveness. But experts believe that it is likely to take at least 20 years to develop such advanced technology.

Hydrogen has long been touted as a potential technology to ease automakers' transition into electrification, given that it would require fewer parts since they can run without engines. Regardless, it appears that Hyundai is holding on to its hydrogen push, with the company even spinning off its hydrogen fuel cell battery development team into a separate entity to completely focus on the project.

In this context, experts stated that Hyundai should instead focus on producing commercial vehicles given they are more economical since they are lighter than those equipped with battery packs and can also charge faster while also giving a substantial range.

Source Credits –

https://www.koreaherald.com/view.php?ud=20220704000490&np=1&mp=1

About the author

Vinisha Joshi

Vinisha Joshi

Despite graduating with an engineering degree in electronics and communication, Vinisha Joshi chose the road less travelled, and decided to pursue her career in content writing . Currently, she pens down articles for cuereport.com and a few other distinguished news platforms, pertaining to business and finance.