South Korean automaker Hyundai Motor Co. saw its hydrogen car sales soar nearly 12 percent in the first quarter of 2025, led by strong demand for NEXO.

According to market tracker SNE Research on Tuesday, Hyundai Motor sold 772 hydrogen vehicles in the January-March period, up 11.6 percent from the same period a year ago.

Hyundai Motor retained its top position in the hydrogen car category.

Hyundai Motor plans to release a face-lift model of NEXO, the first in seven years.

The model is slated for mass production in May and will target key markets including Korea, North America, and Europe.

Global sales of hydrogen fuel cell vehicles, in the meantime, dropped 11.2 percent from a year earlier to 2,119 units in the first quarter of 2025.

Sales fell from a peak of 20,704 units in 2022 to just 12,866 in 2024, underscoring market contraction.

Following Hyundai Motor, Toyota ranked second in sales with 150 units, down 82.8 percent from a year ago.

By country, China topped hydrogen car sales with 1,197 units in the first quarter, up 45.4 percent, followed by Korea with 727 units, up 15 percent.

Japan and Europe saw steep declines, falling 53.2 percent and 91 percent, respectively.

SNE Research described the slowdown as a long-term shift.

“While Korea and China continue to treat hydrogen as a strategic sector, the U.S. and Europe prioritize battery electric vehicles via policy tools such as the Inflation Reduction Act,” it said. “Challenges, including infrastructure gaps, high costs, and limited consumer uptake, hinder hydrogen’s market viability.”

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