South Korea–based automaker Hyundai is facing a downturn in its U.S. hydrogen vehicle sales. Hyundai’s hydrogen-powered SUV, the NEXO, saw a significant sales decline in the U.S. during the first half of 2025, reflecting a broader slowdown in the hydrogen fuel cell electric vehicle (FCEV) market. Toyota’s Mirai, the NEXO’s main competitor, experienced an even steeper drop.
According to Kelley Blue Book, Hyundai sold just 77 units of the NEXO in the U.S. from January to June, down 26.7% from the same period last year. The vehicle accounted for 23.9% of the U.S. FCEV market. Toyota’s Mirai, while still the dominant player with a 76.1% market share, saw its sales plummet 85.8% to 245 units.
Industry experts attribute the sales slump not to brand competitiveness, but to structural issues facing the U.S. hydrogen vehicle market. Key factors include a lack of refueling infrastructure—still largely limited to California—rising hydrogen fuel prices, and lower subsidies compared to battery electric vehicles (EVs).
In response, Hyundai is banking on its next-generation NEXO to revive momentum. Spy shots of the upcoming model—tentatively named the 2026 All-New NEXO—were recently spotted on highways near Scottsdale, Arizona, drawing attention from auto industry watchers.
The new model marks a full redesign after seven years and features a significantly upgraded fuel cell system. Equipped with a more efficient fuel cell stack, the vehicle is expected to deliver 201–255 horsepower and offer a maximum driving range of approximately 435 miles per charge—a 15% improvement over the current version.
Hyundai began rolling out the second-generation NEXO in South Korea last month, with plans to expand to North America and Europe in the coming months.
“The U.S. hydrogen vehicle market remains heavily reliant on California, which limits growth due to infrastructure constraints,” one industry insider noted. “Hyundai aims to maintain its presence in the passenger FCEV segment with the new NEXO while expanding hydrogen technology into the commercial vehicle space.”
