- Hydrogen-Powered Vehicle Sales Surge by Over 72% in China during 2023
On January 11, 2024, the China Association of Automobile Manufacturers released the national fuel cell vehicle production and sales data for the year 2023. According to estimates from the Orange Association Research Institute, in December 2023 alone, fuel cell vehicle production and sales reached 1,298 and 1,512 units respectively.
The annual data revealed a substantial year-on-year increase, with production and sales numbers for 2023 standing at 5,631 and 5,791 vehicles, marking a rise of 55.3% and 72% compared to the previous year (2022 figures were 3,626 and 3,367 vehicles respectively). This growth signifies that from 2015 to 2023, the cumulative production and sales of fuel cell vehicles in China have reached 18,494 and 18,096 vehicles respectively, achieving 36.19% of the targeted 50,000 vehicles by 2025.
The market trend in 2023 showcased initial sluggishness in the first two months, followed by a significant uptick from March to June as fuel cell vehicle orders gradually increased. However, the third quarter marked the off-season with the lowest production and sales, while the fourth quarter experienced a traditional surge, particularly in June and December.
Increase of Hydrogen Stations
In terms of infrastructure development, the Xiangchenghui Hydrogen Energy Database reported the construction of a total of 407 hydrogenation stations in China by 2023, with 62 new stations built within the year. This represents a notable decrease compared to over 100 stations constructed annually in both 2021 and 2022. The slowdown is attributed to complex approval procedures and the fact that the burgeoning hydrogen vehicle market has not yet reached a scale that supports the profitability of hydrogen refueling stations.
By 2023, comprehensive energy stations emerged as the predominant model, accounting for 58% of new builds. Hydrogen production and hydrogenation integrated stations became the second most common type, making up 19%. Traditional stationary hydrogenation stations represented 18%, while skid-mounted stations maintained a smaller market share of 5%.
This data indicates a rapidly growing demand for fuel cell vehicles in China, signifying a pivotal year for the industry’s development and a clear indication of the market’s potential for future growth.
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