What Is the Subsidized Price of Nexo, Targeting Over 10,000 Units Sold This Year?

[Asia Economy Reporter Suyeon Woo] Hyundai Motor Company has set its domestic sales target for this year’s hydrogen electric vehicle Nexo at over 10,000 units, while subsidies related to hydrogen electric vehicles are also on the rise. The maximum subsidy a Nexo buyer can receive this year is up to 42.5 million KRW, allowing the purchase of a Nexo in the mid-20 million KRW range.

According to the Ministry of Environment and the Ministry of Strategy and Finance on the 27th, the national subsidy amount for the hydrogen electric vehicle Nexo this year is 22.5 million KRW, and additional subsidies from local governments are set at up to 20 million KRW (Gangwon). The national subsidy is applied uniformly, and the final purchase price is expected to be determined according to the local government subsidies.

Among local governments, Daegu, Incheon, Gwangju, Sejong, Gyeonggi, Chungbuk, Chungnam, and Jeonnam offered the lowest subsidy of 10 million KRW, followed by Gyeongnam at 10.5 million KRW, Ulsan at 11.5 million KRW, Busan and Daejeon at 12 million KRW each, Seoul at 12.5 million KRW, Jeonbuk at 14 million KRW, and Gangwon at 20 million KRW.

Hyundai Motor Company's hydrogen electric vehicle Nexo

For example, if a Nexo is purchased this year with a subsidy from Gangwon Province, the selling price starting at 68.9 million KRW will be discounted by 42.5 million KRW, allowing purchase at 26.4 million KRW. This discount amount is greater than last year’s maximum subsidy (36 million KRW). Even with the lowest subsidy this year (national subsidy of 22.5 million KRW + local government subsidy of 10 million KRW), the vehicle can be purchased for 36.4 million KRW.

The total number of hydrogen electric vehicle subsidies supported this year has nearly doubled from 5,504 units in 2019 to 10,280 units, and the subsidy budget has also more than doubled from 142.1 billion KRW to 349.5 billion KRW. With this government support, Hyundai has set its domestic sales target for the Nexo at 10,100 units this year.

If Hyundai’s plan to sell 10,000 units this year materializes, Korea will become the first single country to successfully sell over 10,000 hydrogen electric vehicles annually. As of October last year, Korea accounted for 52.4% of global hydrogen electric vehicle sales, representing more than half of the market.

The government is expanding support not only for hydrogen electric vehicle subsidies but also for the establishment of hydrogen charging stations. This year, support will be provided for the establishment of a total of 40 hydrogen charging stations, including 27 for general use and 13 for buses.