Hyundai Motor Co., a South Korean automaker, achieved a significant 11.6% increase in hydrogen car sales in the first quarter of 2025, selling a total of 772 units of the NEXO model. This surge in sales has solidified Hyundai's position as the leader in the hydrogen car category. The company is gearing up to release a facelifted version of the NEXO, the first update in seven years. The new model is scheduled for mass production starting in May and will be targeting key markets such as Korea, North America, and Europe. However, on a global scale, hydrogen fuel cell vehicle sales dropped by 11.2% compared to the previous year. This decline follows a trend from 2022 when sales peaked at 20,704 units, but sharply fell to 12,866 in 2024. Despite the overall decrease, China and Korea saw positive growth in their hydrogen car sales, with China leading the pack with 1,197 units sold in the first quarter. Conversely, Japan and Europe experienced significant declines of 53.2% and 91%, respectively. SNE Research noted that this shift reflects a long-term change, with countries like Korea and China maintaining hydrogen as a strategic sector, while the US and Europe are prioritizing battery electric vehicles due to policy tools like the Inflation Reduction Act. Challenges such as infrastructure gaps, high costs, and limited consumer adoption are cited as hindrances to the market viability of hydrogen fuel cell vehicles.