Jeong Mong-gu Takes First Step in Hydrogen Cars, Jeong Eui-seon Leads Transition... Hyundai Family's Hydrogen Passion Bears Fruit

Jang Jae-hoon, Hyundai Motor CEO, Emphasizes Price Competitiveness of New Hydrogen Car at Concept Car Unveiling
"Transition to Hydrogen Society Is Our Mission... Strengthening Technological Leadership"

Jang Jae-hoon, CEO of Hyundai Motor Company, emphasized the background of Hyundai's initial development of hydrogen vehicles at the hydrogen concept car unveiling event held on the 31st. The company officially began its hydrogen vehicle development in 1998 with the establishment of the Mabuk Environmental Technology Research Center in Yongin. This year marks the 27th anniversary.

At that time, Chung Mong-koo, then chairman of Hyundai Group and honorary chairman of Hyundai Motor Group, encouraged the development team by saying things like, "You can never make it perfectly on the first try," "Don't worry about money, let young engineers make any car they want," and "There is no need to make the same car to save money; it’s okay if all 100 cars are different." This was during a time when the whole country was shrinking back due to the foreign exchange crisis (IMF) that erupted the previous year.

Hyundai Motor Company CEO Jang Jae-hoon is explaining the history of Hyundai's hydrogen vehicle development as he unveiled the hydrogen concept car, the N Vision, on the 31st. CEO Jang conveyed a past remark from Chung Mong-koo, Honorary Chairman of Hyundai Motor Group (center in the background), who said during the early development stages, "Don't worry about money and let young engineers create any car they want to make."
[Photo by Hyundai Motor Group]

Such encouragement gradually bore fruit. Employees who flew to the United States worked day and night for six months and developed the first hydrogen electric vehicle with local companies that provided assistance. The project was named Mercury, after the planet closest to the sun, symbolizing the determination to quickly catch up with leading companies.

Subsequently, the company’s employees released a hydrogen vehicle developed independently in 2004, just four years later. Investment continued even during the global financial crisis. In 2013, they achieved results with the world’s first mass-produced hydrogen electric vehicle, the Tucson ix FCEV. This record of the first mass-produced vehicle was later extended to large trucks and buses.

Jung Eui-sun, chairman of Hyundai Motor Group, goes a step further by emphasizing the transition to a hydrogen society. He has consistently stressed that refining hydrogen technology as a future energy source is a corporate mission to solve crises humanity faces, such as climate change and energy inequality. He insists that the transition to a hydrogen society must happen not only for us now but also for future generations.

Chairman Chung Euisun of Hyundai Motor Group, who attended the 2024 CES held earlier this year, is answering questions from the press. [Photo by Hyundai Motor Group]

Regarding the price range of the new hydrogen electric vehicle to be released next year, CEO Jang said, "It is most important to broaden the range of choices within what consumers can accept." This means Hyundai aims to lower the price barrier, which is considered an obstacle to the expansion of hydrogen vehicle adoption, as much as possible.

He added, "Our government is also actively supporting the transition to a hydrogen society," and said that pricing will be linked with government subsidies to be determined in the future. He further stated, "There are many challenging aspects to lowering the price, but we consider it our mission rather than focusing on profitability." The Nexo, the only domestic hydrogen electric passenger car model released by Hyundai in 2018, is expected to be launched in the first half of next year based on the concept car unveiled on this day.

Chung Mong-koo, Chairman of Hyundai Motor Group, is visiting the Kia plant in Zilina, Slovakia, in 2016, looking inside a vehicle working on the production line.
[Photo by Hyundai Motor Group]

The Nexo, the only hydrogen passenger car sold domestically, is priced at 69.5 million KRW. Considering national and local government subsidies, consumers can purchase it for the mid-to-high 30 million KRW range. In Seoul, local government subsidies bring the price down to 32.5 million KRW. The price decline has been slower than expected, and overall new car demand, including internal combustion engine vehicles, has decreased, causing battery electric vehicle demand to recently stagnate. Inconvenient charging infrastructure still remains a hindrance. Given this situation, if the new hydrogen vehicle does not achieve price competitiveness, it will be difficult for demand to revive no matter how excellent the product competitiveness is.

CEO Jang said, "Although this is a chasm period for electric vehicles (a temporary demand stagnation), I believe the overall direction is just a matter of timing and that it will definitely progress," adding, "Basically, the electrification strategy will have two pillars: one is battery electric vehicles, and the other is hydrogen vehicles."

Hyun Sang-yeop, Vice President of Hyundai Motor Company, is presenting the new hydrogen concept car, which will be mass-produced in the second half of next year, at the Hyundai Motorstudio Goyang in Gyeonggi-do on the 31st. Photo by Jo Yong-jun

He continued, "Although it started as a means of transportation, we plan to provide solutions and applied products for the energy ecosystem, that is, the entire industry," and added, "Since hydrogen vehicles and hydrogen fuel cell-based applied products have a clear role in carbon neutrality, we will steadily play a leading role in this field."

He also emphasized the importance of technology in realizing a hydrogen society. Looking long-term, since fuel cells including hydrogen vehicles are likely to be widely used, it is necessary to secure and continuously develop the required technologies. He highlighted that producing actual mass-produced hydrogen electric vehicles, selling them in the market, and receiving feedback during the technology verification process is an important asset.

A hydrogen car developed by Hyundai Motor Company in the past is exhibited at Hyundai Motorstudio Goyang. Hyundai Motor Company has decided to exhibit it to the public from the 31st until the 17th of next month.
[Photo by Hyundai Motor Group]

He also opened the possibility of collaboration between various heterogeneous industries, including the automotive sector. Kim Chang-hwan, executive director in charge of Hyundai Motor’s electrification energy solutions, said, "While concretizing the technology, we are thinking about how to expand it further and provide it to more people," adding, "We will continue strategic collaborations with various domestic and international companies in specialized material fields and others."