Sales of electric vehicles in the U.S. are showing some signs of recovery, while the market for hydrogen fuel cell vehicles (FCVs) has practically collapsed, according to figures from the Hydrogen Fuel Cell Partnership and Baum and Associates, an auto industry research firm.
In the first half of the year, a total of 322 FCVs were sold in the U.S., primarily in California ― an 82% nosedive from the 1,827 sold in the first half of 2023, and the lowest sales since 2016.
Only two FCV models are currently available in the U.S.: the Toyota Mirai (99 sold in the second quarter) and the Hyundai Nexo (26 sold), according to a report by InsideEVs. Honda is expected to introduce a fuel cell, plug-in hybrid model in 2025 ― that is, an FCV with a small electric battery ― called the CR-V e:FCEV, which will only be available in California.
A total of 18,279 FCVs have been sold or leased since 2012, when Baum started tracking sales. California has 66 fuel cell buses, with more than 103 in the pipeline.
California is also the only state with a network of hydrogen fueling stations. The Fuel Cell Partnership lists 54 stations in operation across the state, mostly concentrated around the San Francisco Bay Area and Los Angeles.
When first introduced in the early 2010s, FCVs running on hydrogen were promoted as an alternative to EVs, which then had shorter battery ranges and longer charging times. But the market has shrunk to the point that industry analysts such as BloombergNEF are no longer tracking sales or other developments.
“The vehicles are still expensive; the fuel is still expensive. But most importantly, consumers don’t seem to be very interested in the technology, even in places with really generous incentives,” Colin McKerracher, head of clean transportation at BNEF, said at a recent webinar on the global EV market. (See BNEF: ICE Phaseout by 2035 Critical to Reach Net Zero by 2050.)
BNEF might consider tracking FCVs if and when sales reach 0.1% of the global market, McKerracher said.
Record Q2 for EVs
By comparison, EV sales in the U.S. staged a comeback, according to recent figures from Kelley Blue Book. In the first half of the year, 599,372 EVs were sold, and the second quarter saw record sales of 330,463, a year-over-year increase of 11.3%.
General Motors posted record EV sales in the second quarter as well, with 21,930 EVs on the road, a 40% year-over-year increase.
Stephanie Valdez Streaty, Cox Automotive’s industry insights director, noted that second-quarter EV sales “exceeded expectations.”
“The overall competitive landscape for electric vehicles is intensifying,” Streaty said in a press release. “This increased competition is leading to continued price pressure, gradually boosting EV adoption. Automakers that deliver the right product at the right price and offer an excellent consumer experience will lead the way in EV adoption,” even among consumers still hesitant to go electric.
The Biden administration is also continuing to support the buildout of a domestic EV supply chain with its recent announcement of $1.7 billion in funding to help reopen or retool 11 existing auto factories that have either closed or are at risk of closure.
The funding, from the Inflation Reduction Act, will go to factories in eight states ― Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland and Virginia — according to the announcement from the Department of Energy.
One example, Blue Bird Body Co. of Fort Valley, Ga., has been selected to receive $79.7 million to convert a factory that previously manufactured vehicles with internal combustion engines into a 600,000-square-foot plant turning out zero-emission buses.
