Hyundai Motor’s (005380.KS) hydrogen-powered vehicle “The All-New Nexo,” which drew attention when entertainer Yoo Jae-suk said “I drive a Nexo. I really do,” is expected to benefit from purchase subsidy policies again this year.
According to industry sources on Wednesday, the Ministry of Climate, Energy and Environment will invest 576.2 billion won in state funds to supply a total of 7,820 hydrogen vehicles this year, including 6,000 passenger cars. The national subsidy for Nexo will remain at 22.5 million won, the same as last year.
Subsidies are scheduled to begin at the end of this month following announcements from local governments. In the case of Seoul, buyers can receive 29.5 million won in subsidies for a Nexo priced at approximately 76 million won. Additional benefits include tax reductions of up to 6.6 million won (4 million won in individual consumption tax, 1.2 million won in local education tax, and 1.4 million won in acquisition tax), a 50% discount on public parking fees, a 30% discount on highway tolls, and exemption from Namsan Tunnel congestion charges. Hyundai Motor explained that last year, buyers could purchase the vehicle in the high 30 million won range with 22.5 million won in government subsidies plus 7 million to 15 million won in local government subsidies.
The new Nexo, launched by Hyundai Motor in June last year, sold 4,660 units in the six months following its release, more than triple the sales volume during the same period the previous year. The Nexo features a solid and refined futuristic style suitable for both urban and outdoor driving, a maximum single-charge driving range of 720 kilometers, high-efficiency powertrain performance based on maximum motor output of 150kW, and best-in-class safety and convenience features.
Korea’s hydrogen vehicle market is also gaining momentum. Total hydrogen vehicle sales last year reached 6,903 units, a 182% increase from the previous year. Among these, hydrogen passenger cars totaled 5,708 units, a 210% increase driven by the Nexo launch.
