Hyundai Motor Co has increased its production capacity for hydrogen buses at its Jeonju plant in South Korea six-fold, from 500 units in 2023 to 3,000 units in 2024, as it aims to meet growing demand and fend off competition from Chinese manufacturers.
The expansion at the Jeonju plant, which serves as a production center for buses and other large commercial vehicles, is part of the latest modernization step for the facility, according to local media reports.
Hyundai’s move comes as Chinese electric buses have outsold domestic buses in South Korea for the first time in 2023. Chinese buses are more than 100 million won ($84,000) cheaper than their Korean counterparts, creating significant price competition.
To combat this trend, South Korea’s Ministry of the Environment is subsidizing more than twice as many hydrogen buses in 2024 as it did in 2023, with 1,720 buses set to receive subsidies compared to 700 the previous year.
“Hyundai Motor Group plans to hire 80,000 employees and invest 68 trillion won, the equivalent of around 47 billion euros, in South Korea over the next three years, including in electric vehicles,” the company said in a statement.
“In this context, the Group also mentioned its intention to further accelerate the development of next-generation fuel cell systems, hydrogen buses and trucks, and the construction of hydrogen stations,” the statement added.
Hyundai Motor sold around 370 fuel cell buses in South Korea in 2023, according to the national Ministry of Land, Infrastructure and Transport.
The South Korean company is the country’s only manufacturer of hydrogen buses, and its expansion of production capacity aligns with its broader strategy to invest in electric vehicles and hydrogen-powered vehicles.
