Hyundai and Indian Oil Begin Real-World Testing of Hydrogen Cars in India

Hyundai and Indian Oil Begin To Real-World Testing of Hydrogen Cars in India

In a major move towards sustainable mobility, Hyundai Motor India Limited (HMIL) has partnered with Indian Oil Corporation Ltd. (IOCL) to explore the everyday use of hydrogen fuel cell vehicles (FCEVs) on Indian roads. Under a Memorandum of Understanding (MoU) signed on 22 April 2025, Hyundai’s hydrogen-powered NEXO SUV will undergo real-world trials over the next two years. The initiative is in line with India’s National Green Hydrogen Mission and aims to evaluate hydrogen’s potential as a cleaner alternative to petrol and electric vehicles.

Hyundai NEXO: Driving into a Hydrogen Future

Already available in countries like Japan and the US, the Hyundai NEXO uses a fuel cell system that generates electricity by combining hydrogen with oxygen—emitting only water vapour in the process. It promises a claimed range of 666 km and a refuelling time of under five minutes, addressing two key concerns often associated with battery electric vehicles (BEVs): long charging times and range anxiety.

For the Indian trials, the NEXO will cover around 40,000 kilometres, tackling everything from city traffic to rough terrains and extreme weather. Alongside performance testing, a detailed study will evaluate the Total Cost of Ownership (TCO), including factors like maintenance and hydrogen fuel costs. This analysis will be crucial in determining whether hydrogen vehicles can be economically viable for Indian private buyers.

Why Hydrogen? The Opportunity and the Obstacles

Hydrogen fuel cell vehicles offer a middle path between traditional internal combustion engines and battery-powered EVs. Unlike BEVs that rely on lithium-ion batteries, FCEVs can be refuelled quickly and tend to offer longer ranges—advantages already seen in international models like the Toyota Mirai and Honda Clarity.

But India’s hydrogen journey is still at a very early stage. Some key challenges include:

Lack of Infrastructure: Hydrogen refuelling stations are virtually non-existent in India. While Indian Oil’s deep expertise in fuel distribution could help, building a hydrogen network will require significant investment.

High Production Costs: Most hydrogen today is produced using fossil fuels. “Green hydrogen”—made using renewable sources—remains expensive and accounts for less than 1% of global production. Widespread use will depend on bringing these costs down.

Public Perception and Safety: While carmakers like Hyundai and Toyota claim that hydrogen tanks are crash-tested and safe, wider public acceptance will depend on how these vehicles perform in real-world Indian conditions.

Beyond Testing: Building a Hydrogen Ecosystem

Hyundai’s efforts go beyond road trials. The company is also collaborating with IIT Madras to set up a Hydrogen Innovation Centre, aimed at supporting startups and Indian manufacturers in developing localised green hydrogen solutions. This twin-track approach—testing an existing product while nurturing homegrown technology—shows a clear long-term commitment.

“Our goal is to make hydrogen accessible and affordable,” said HMIL Managing Director, Unsoo Kim. Echoing the sentiment, Dr Alok Sharma, Director of R&D at IndianOil, stated that the partnership would “accelerate India’s transition to energy independence.”

Hydrogen and the Future of India's Mobility Mix

Hyundai’s hydrogen push fits into a broader strategy that includes hybrids, battery EVs, and flex-fuel engines. This diversification matters, especially as questions are being raised about the long-term sustainability of lithium-based batteries. Hydrogen offers an alternative that can potentially leverage India’s strengths in solar and wind energy for green hydrogen production.

However, policy support will be key. If the government extends incentives for hydrogen infrastructure—similar to those offered for EVs—it could make FCEVs a more viable option for commercial fleets and inter-city travel.

What Lies Ahead

Over the coming two years, the performance of the NEXO in Indian conditions will offer critical insights. While private adoption may take time, early applications are likely to come from commercial fleets, where long range and fast refuelling are essential. The outcome of the Total Cost of Ownership study will be particularly important in gauging consumer interest.

If green hydrogen prices drop and a robust refuelling network emerges, hydrogen-powered vehicles could become a practical part of India’s mobility landscape. As global examples like the Toyota Mirai have shown, hydrogen’s success is not just about the technology—it also depends on policy, infrastructure, and public perception.

This partnership between Hyundai and IndianOil may just be the beginning of a new chapter in India’s green mobility journey. While mass adoption of hydrogen cars is still some distance away, these early trials could lay the foundation for a cleaner, more diversified automotive future.