Expanding Hydrogen Car Market... BMW and Audi Join In

The Market Dominated by Hyundai and Toyota Is Expected to Grow Larger

[Asia Economy Reporter Changhwan Lee] As European luxury car manufacturers such as BMW and Audi are increasingly entering the global hydrogen vehicle market led by Hyundai Motor Company, expectations are growing that the market size will expand.

According to foreign media and the automotive industry on the 23rd, BMW, a German luxury car manufacturer, plans to launch a mass-market hydrogen passenger car model by 2030.

BMW recently unveiled a prototype of the iX5 hydrogen vehicle based on its flagship SUV (Sports Utility Vehicle) model, the X5. BMW announced that it will produce 100 prototypes based on models like the iX5 by 2022 to begin full-scale commercialization testing.

J?rgen Guldner, Vice President leading the hydrogen vehicle project at BMW, said in an interview with local media, "Our team is already working to develop the next-generation automobile," adding, "The product will be released within 10 years."

German automaker Audi is also operating a project to develop hydrogen vehicles. Audi currently has a team of more than 100 mechanics and engineers working on hydrogen vehicle development.

If the market expands to include hydrogen commercial vehicles, more participants are expected to join. French Renault Group established a joint venture with hydrogen fuel cell company Plug Power earlier this year and is developing small- and medium-sized hydrogen trucks.

German Daimler, the parent company of Mercedes-Benz, launched a joint venture with Swedish Volvo Trucks in June last year to develop fuel cell systems for hydrogen electric trucks. Hyundai has already started exporting its Xcient hydrogen trucks.

The reason major automakers are rushing into hydrogen vehicle development is due to their high eco-friendliness. Hydrogen vehicles, along with electric vehicles, are considered representative alternatives that can replace internal combustion engine vehicles.

Accordingly, as more competitors enter the global hydrogen vehicle market currently dominated by Hyundai and Toyota, the market is expected to grow further. According to market research firm SNE Research, global hydrogen vehicle sales reached over 10,300 units from January to July this year, more than doubling compared to about 4,900 units last year.

Hyundai's global hydrogen vehicle market share is 51.2%, while second-place Toyota holds 40.1%. Hyundai is leading the market with a significant increase in sales of its flagship Nexo model. British investment bank Barclays has predicted that the hydrogen market size will reach $1 trillion (approximately 1,120 trillion KRW) by 2050.