INTERVIEW | ‘This is why sales of hydrogen cars are falling — even in South Korea’
Lack of charging infrastructure and H2 supply is damaging formerly buoyant Korean fuel cell car market
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Nam-hoon Kang, chairman of the Korea Automobile Mobility Industry Association (KAMA), warned that South Korea’s target to deploy 300,000 FCEVs is still some way off — and acknowledged that sales are falling.
“Secondly, they are very inconvenient to use because electric vehicle charging stations are more [abundant] than the fuel cell charging [filling] stations.”
Sales of passenger FCEVs are declining globally but the fall has been especially acute in Korea, the world’s largest hydrogen car market.
Seoul's 300,000 FCEV target is envisaged for 2030, with the stipulation that 10% of it should be met by commercial vehicles such as buses and trucks.
However, Kang warned that Korea still has some way to go, achieving just a tenth of the 300,000 so far.
“At this point the government has realised that developing good fuel cell cars, that’s not enough,” he said. “We have to construct all the infrastructure as well, including charging stations. And if you have all the charging stations, where can you get the hydrogen gas? Right now, it is made from natural gas, fossil fuels, but to really make a contribution to the carbon-free society we have to get this hydrogen from a carbon-free energy source, renewable energy. But it is very expensive.”
However, Seoul recently took the decision to cut the budget for hydrogen car subsidies by around 43%, most likely because of poor uptake.
The government now appears reluctant to pour even more money into expensive infrastructure and green hydrogen supply purely to incentivise a market for hydrogen cars.
The KAMA president believes that instead the government wants to focus on the uptake of commercial vehicles, which could bring about the investment in the necessary infrastructure needed for the car market.
“Nowadays, government and business and the Hyundai company want to make an effort to promote more commercial fuel cell vehicles rather than the fuel cell cars,” he said.
He added: “But for Korea the government as well as business has a very strong commitment to the development of fuel cell cars, so we have a very clear target. Right now there are 35,000, so [we need] ten times more. So we have to make a lot of effort.”