South Korea, Hyundai Motor pin hopes on hydrogen cars as new energy source and money-spinner
- But analysts are not convinced it is the right move for the carmaker, which is fifth-largest in the world by sales but struggling to regain market share in the United States and China
Last October in the United States, the company launched Nexo, an SUV that goes 609km on a single charge, has no battery, and puts out nothing but water vapour from its exhaust. And in December, it announced it would spend US$6.7 billion from now till 2030 on hydrogen technology.
But its commitment to hydrogen fuel cell-powered cars is confounding some experts even though they agree the carmaker, the fifth-largest in the world by sales but struggling in the Chinese and American markets, needs to keep innovating.
Namuh Rhee, former managing director of Merrill Lynch and now a professor at Yonsei University in Seoul, said the focus on hydrogen cars was “questionable” because of the huge costs involved, while “virtually all other global car makers” had made big plans to produce battery-powered electric vehicles (EVs). The country also has a shortage of refilling stations for hydrogen vehicles in comparison to the growing number of charging stations for EVs.
