China, S Korea drove rebound in 2025 H2 vehicle sales

Global fuel cell electric vehicle (FCEV) sales recovered in 2025 after a weak first half of the year, returning to volumes similar to 2023 on the back of strong second half growth in South Korea and a late-year surge in China, according to South Korean intelligence firm SNE Research.

Chinese sales rose sharply in December as commercial vehicle buyers moved to secure purchases before a cut to the "new energy vehicle" purchase tax subsidy, which fell in January from 30,000 yuan ($4,340) per unit to Yn15,000.

Additional momentum came from end-of-year performance deadlines in regional hydrogen vehicle pilot schemes. Chinese market research firm GGII separately said December FCEV registrations exceeded the combined total of all other months in 2025.

China remained the largest FCEV market, accounting for nearly 49pc of global sales. South Korea increased its share to 42.5pc, supported by a rebound in Hyundai deliveries in the second half. Europe, the US and Japan all posted declines, SNE data show.

European FCEV deployments continue to centre on buses and heavy-duty pilot fleets, with refuelling capacity expanding. In the US, hydrogen mobility remains largely confined to California. Canada introduced federal FCEV incentives only this month, offering up to C$5,000 ($3,700) for vehicles built domestically or in free trade partner countries, but has not introduced support for refuelling infrastructure.

Hyundai strengthened its position as the world's largest FCEV supplier, selling 7,047 units in 2025 — a 58pc rise from 4,460 in 2024 — the company said. Growth was driven by the launch of the second generation Nexo passenger car, with additional volumes from the Elec City bus and Xcient truck models.

Japan's FCEV market continued its multi-year contraction. Sales of Honda's CR-V FCEV, launched in 2024, were just 185 last year, according to SNE. Toyota sold 1,257 units — well below its 2021 peak and even trailing 2016. The Japanese government plans to scale back FCEV subsidies, which could further weaken demand and slow hydrogen consumption growth. Toyota's overseas FCEV sales have also fallen below 2016 levels, the company's results showed.

Toyota is continuing fuel cell product development and partnerships. It plans to launch its Hilux fuel cell pick up in 2028 and is collaborating with Germany's BMW on fuel cell systems and powertrains. The latter is targeting production from 2028. Toyota Motor Europe chairman Didier Leroy told the Hyvolution Paris conference in January that the firm will release its next-generation fuel cell system by the end of the decade.

Leroy said hydrogen FCEVs will continue to play a role in transport decarbonisation and will coexist with battery electric vehicles (BEVs) to meet differing operational needs, such as in bus and logistics fleets. But a recent survey by German research institute Oeko Institut found hydrogen trucks have lost favour with fleet operators, who increasingly view fuel cell models as less relevant than battery electric trucks. The share of respondents expecting hydrogen powered trucks to be standard or partially in use by 2030 fell from 80pc in the 2021 survey to 44pc in 2025.

FCEVs remain niche, accounting for only a small share of major automakers' electrified vehicle sales. FCEVs represented just 0.76pc of Hyundai's electrified sales in 2025 and 0.03pc of Toyota's. Growth will depend on whether refuelling infrastructure expands, whether regional pilot schemes translate into sustained demand, and whether subsidies remain stable. These factors influence the total cost of ownership, which is the key metric used by fleet operators when making purchase decisions, fuel cell maker Cellcentric told Argus.

By Chingis Idrissov

Global FCEV sales compared with Hyundai Nexo & Toyota Mirai sales units