Strengths include single-charge driving range and interior comfort
Subsidies from Japan’s national and local governments also provide a boost

Hyundai Motor’s hydrogen fuel cell vehicle, the all-new NEXO, has surpassed a 10% share of Japan’s taxi market.

According to the Japan Automobile Dealers Association, on October 8, Hyundai Motor’s cumulative share of Japan’s passenger hydrogen fuel cell vehicle market from April to August reached 11%. A total of 20 all-new NEXO vehicles were sold during this period. Including vehicles awaiting delivery to customers, sales are expected to rise to 35, expanding the model’s market share. Of these, 22 have been supplied or are awaiting delivery to taxi operators in Tokyo and Aichi, iconic regions of Japan’s auto market where standards for vehicle adoption are strict.



Hyundai Motor's hydrogen fuel cell vehicle, the all-new NEXO, has surpassed 10% market share in Japan's taxi market. A NEXO taxi in Japan. Hyundai Motor.

Hyundai Motor’s hydrogen fuel cell vehicle, the all-new NEXO, has surpassed 10% market share in Japan’s taxi market. A NEXO taxi in Japan. Hyundai Motor.


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Japan’s taxi market is considered a prime example of a sector where local automakers have long dominated and imported brands face high barriers to entry. Standards are known to be particularly strict for vehicle reliability and durability, passenger cabin and luggage-space convenience, quietness, and operating costs.

Since first embarking on fuel cell development in 1998, Hyundai Motor has accumulated nearly 30 years of technological expertise and real-world driving data. Drawing on feedback that reflects this experience, the company has significantly improved the all-new NEXO’s performance and efficiency. The all-new NEXO’s fuel cell system delivers a rated output of 94 kW, an 11% improvement over the previous model. Technologies that prevent damage to the electrolyte membrane, along with analysis of stack vulnerabilities and reinforcement designs, help ensure consistent performance and durability even during extended operation.

The high-voltage battery was designed to reflect the characteristics of hydrogen fuel cell vehicles, which undergo frequent rapid charging and discharging. While maintaining the battery system’s volume, Hyundai Motor doubled its output from 40 kW to 80 kW. The durability of the fuel cell system was also verified under demanding conditions reflecting customers’ actual driving environments, including urban traffic congestion and extended idling.

In particular, the all-new NEXO can travel up to 720 km on a single charge. Under Japan’s WLTC certification standard, its driving range on a single hydrogen fill reaches 1,014 km. The vehicle is expected to deliver high operating efficiency for Japan’s taxi industry, where taxis travel approximately 50,000 to 100,000 km annually.

The spacious interior, which enhances passenger comfort, has also received a strong response. The all-new NEXO offers more generous second-row space than its predecessor, along with 510 liters of trunk capacity. As the number of tourists visiting Japan has risen sharply, ample luggage space for large suitcases and golf bags has become a key factor in improving convenience for taxi operations.


Hyundai Motor's hydrogen fuel cell vehicle, the "The All-New Nexo," has surpassed a 10% share of Japan's taxi market. A "The All-New Nexo" taxi in Japan. Hyundai Motor.

Hyundai Motor’s hydrogen fuel cell vehicle, the “The All-New Nexo,” has surpassed a 10% share of Japan’s taxi market. A “The All-New Nexo” taxi in Japan. Hyundai Motor.


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All all-new NEXO vehicles sold in Japan come standard with V2H functionality, which can reliably supply power from the vehicle to homes and household appliances during disasters or power outages.

The all-new NEXO’s growing share of Japan’s taxi market has been supported not only by its strong product appeal but also by policies from the government and major local governments to expand hydrogen mobility. The Japanese government has designated commercial vehicles such as taxis, buses, and trucks as “priority hydrogen mobility vehicle types” because their long driving ranges can reduce greenhouse gas emissions and promote hydrogen consumption. It is also providing a range of support measures, including purchase subsidies for hydrogen fuel cell taxis.

Through its “TOKYO H2” environmental policy project, the Tokyo Metropolitan Government is providing large-scale subsidies with targets of deploying 600 hydrogen fuel cell taxis by 2030 and 10,000 commercial hydrogen fuel cell vehicles by 2035. It also offers fuel-cost subsidies covering the difference between hydrogen and LPG costs, up to 1.3 million yen per year.

Aichi Prefecture, the center of Japan’s auto industry, is also aiming to introduce 250 hydrogen fuel cell taxis by 2030. It is significantly reducing the burden on transport operators by providing vehicle adoption subsidies of 3.5 million yen per vehicle and fuel-cost subsidies of 576 yen per kilogram of hydrogen.

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In line with this policy environment, Hyundai Motor plans to expand opportunities for customers in Japan to experience the all-new NEXO’s driving performance and convenience firsthand, driving greater brand awareness and sales growth for the model. “Japan’s taxi industry, which places a high value on durability and convenience, is showing interest in the all-new NEXO,” a Hyundai Motor official said. “All-new NEXO taxis will help make imported passenger vehicles and hydrogen fuel cell vehicles more accessible and lead to positive evaluations.”

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