Hyundai increases annual hydrogen bus production capacity by a factor of six: report

Hyundai will increase its hydrogen bus capacity by a factor of six in South Korea this year, with expectations that it can quadruple sales on the back of increased government subsidies, according to the respected Korean publication Maeli Business Newspaper.

Annual production capacity for hydrogen buses at the Korean automaker’s factories in the city of Jeonju is increasing from 500 to 3,000.

Hyundai — the only company producing hydrogen-powered buses in South Korea — sold about 370 units of its Elec City fuel-cell bus last year, but is expected to quadruple that number in 2024, writes the newspaper.

While the Korean Ministry of Environment set aside subsidies for the purchase of 700 hydrogen buses last year, it has increased the number available this year to 1,720.

The Elec City buses cost about 700m-800m won ($506,000-578,000) each, while subsidies from national and local governments tend to amount to 300m won per vehicle.

The government’s decision to increase the number of hydrogen-bus subsidies this year is said to be a reaction to Chinese manufacturers taking the lion’s share of subsidies available for battery-electric buses last year — largely due to the fact that the Chinese models were more than 100m won cheaper than Korean-made equivalents.

The Maeli Business Newspaper points out that while hydrogen-bus subsidies are increasing this year, the support available for battery-electric buses has been shrunk by 30%.

“There are growing concerns about Chinese electric buses absorbing large subsidies for electric vehicles and encroaching on the market,” an unidentified automobile industry official told the publication. “There is an opinion that it is better to increase the number of hydrogen buses produced by domestic companies even considering the higher price.”