Hydrogen cars have spent years in the same waiting room as flying taxis. They are almost always available, but there is no commercially available product for interested buyers. When a Hyundai manager dismissed the obituary, I was immediately curious.
To be clear, Hyundai hasn’t announced a new car. The big news here is that the Australian branch says hydrogen is “not dead” for passenger vehicles. Apparently the automaker is still evaluating a next-generation hydrogen fuel cell car if it can find buyers (via CarExpert).
Why is Hyundai still relying on hydrogen cars?
Hyundai’s case is energy security. Hyundai Australia’s Scott Nargar says the country should power transport with what it already has: solar, wind and fossil fuels. If you ask me, this list describes the US just as well.
Hyundai’s hydrogen SUV, the Nexo, was certified for Australia last year and is expected in 2026, but has not yet arrived. It’s unclear whether Hyundai is still testing the Nexo or a brand new model. The most important point, however, is the cost.
Nargar acknowledges that the technology “isn’t as cheap as electric.” Even for trucks, this involves “significant costs” compared to a gasoline or diesel model. Since U.S. drivers view trucks as a personality trait, I doubt hydrogen will reach our driveways any time soon.
Why does Hyundai say stricter rules could make hybrid vehicles more expensive?
Elsewhere, Australia’s New Vehicle Efficiency Scheme (NVES) penalizes car manufacturers whose emissions exceed CO2 targets. As of January 1, 2027, the car limit will fall from 117 to 92 grams per kilometer.
According to the CarExpert Up to 51 hybrid variants will reportedly exceed their targets, with only about seven escaping, including a Lexus ES and RX that will be familiar to US buyers.
Nargar says they are undercutting drivers who can’t afford, charge, or tow with an electric vehicle. Citing external research, he warns more expensive hybrids will remain in older cars, leading to poor road safety and emissions after Australia’s worst-ever road toll.
Could it become harder to afford cleaner cars?
This sounds a lot like US tenants who don’t have a connection: same problem, different zip code.
He also predicts “the haves and the have-nots” and says that NVES “should never dictate what a customer should buy.” Hyundai has a horse in this race, but I buy his spirit.
For US buyers, I would take this as a warning, not a prediction: stricter targets may quietly increase the price of the cheap first step.
RELATED COVERAGE:
