US Hydrogen Car Sales Drop, Raising Future Concerns

Sales of hydrogen-powered passenger vehicles in the first quarter experienced a 30 percent decline. The United States, which has had limited sales of hydrogen fuel cell cars so far, witnessed a significant drop in the first quarter of 2023, with sales down nearly 30 percent compared to the same period in 2022.

Hydrogen fuel cell car sales, particularly in the US, have been almost nonexistent, and the downward trend continues. Even in California, the only state where hydrogen fuel cell car sales are taking place, sales are decreasing. This raises concerns about the future viability of hydrogen (H2) in the passenger vehicle market and whether battery electric vehicles (EVs) have established their dominance in the zero-emission car market.

According to data from the Hydrogen Fuel Cell Partnership, there were only 725 new H2-powered passenger vehicles sold in the US during the first quarter of this year. This data, gathered by Baum and Associates, tracks car sales from dealers to retail or fleet customers.

When compared to the total number of vehicles sold in Q1 2023, the sales of 725 H2-powered vehicles were insignificant. In contrast, battery electric cars experienced 257,507 new registrations during the same period, representing a 63 percent year-over-year increase.

In California alone, there were 87,525 new registrations for battery electric vehicles and 16,470 sales of plug-in hybrid electric vehicles (PHEVs) in the first quarter.

However, proponents of hydrogen fuel cell cars and automakers in that market do not view the Q1 figures as discouraging. They see it as a single quarter and not necessarily indicative of a long-term trend. Comparing it to the previous quarter (Q4 2022), where 720 units were sold, indicates a relatively stable market rather than a sharp decline.

Nonetheless, the sales numbers remain small, and without significant growth in hydrogen fuel cell car sales in the upcoming quarters, it will be challenging to compete with the electric vehicle market, which currently dominates the industry.

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