Hyundai has delayed the next generation of Nexo fuel-cell vehicle

Hyundai has delayed the next generation of its Nexo hydrogen fuel-cell vehicle, Reuters reported Wednesday.

The automaker had planned to start production and sales of a redesign Nexo in the second half of 2023, but has delayed the launch to 2024 due to issues with fuel-cell development, according to the report.

Plans to launch fuel-cell vehicles for the Genesis luxury brand are on hold as well, according to the report. Development of the first Genesis fuel-cell vehicle was reportedly suspended late last year. In the meantime, Genesis is moving ahead with battery-electric vehicles, starting with the GV60 crossover in the United States.

2021 Hyundai Nexo

Launched in 2018, the Nexo is Hyundai\’s first dedicated fuel-cell model, succeeding the Tucson Fuel Cell. It\’s a very pleasant-driving vehicle, from what we\’ve found, and it even got a Top Safety Pick+ nod from the Insurance Institute for Highway Safety (IIHS).

But like other hydrogen cars, the Nexo is a niche item. Hyundai sold just 3,978 in its home market of South Korea and exported 120 between January and May of this year, according to the report. In the U.S., the Nexo and other fuel-cell vehicles are sold only in California because it\’s the only state deemed to have sufficient fueling infrastructure.

Even that limited infrastructure has been subject to series of outages and mishaps in 2020, which probably didn\’t help the case for a redesigned Nexo.

Hyundai Xcient Fuel Cell semi truck to be used in California tests

And starting with the launch of the HTWO brand, in late 2020, Hyundai signaled a new push to the use of fuel cells in buses, planes, and trains. That includes plans to test fuel-cell semi trucks in California.

Meanwhile, Hyundai is pushing ahead with its plans for a greatly expanded EV lineup, including the Ioniq 6 that was revealed earlier this week. The automaker is aiming for 7% of the global EV market by 2030, and wants half of its U.S. sales to be electric by that year.