Reference no: EM133100852

In 2020, South Korean car producer Hyundai Motor Company shipped the first 10 units of the Hyundai XCIENT Fuel Cell, the world's first mass-produced fuel cell heavy-duty truck, to Switzerland. The company planned to ship a total of 50 XCIENT Fuel Cells to Switzerland in 2020, with handover to commercial fleet customers starting in September. Hyundai plans to roll out a total of 1,600 XCIENT Fuel Cell trucks by 2025, reflecting the company's environmental commitment and technological prowess as it works toward reducing carbon emissions through zero-emission solutions. "XCIENT Fuel Cell is a present-day reality, not as a mere future drawing board project. By putting this groundbreaking vehicle on the road now, Hyundai marks a significant milestone in the history of commercial vehicles and the development of hydrogen society," said In Cheol Lee, Executive Vice President and Head of Commercial Vehicle Division at Hyundai Motor. "Building a comprehensive hydrogen ecosystem, where critical transportation needs are met by vehicles like XCIENT Fuel Cell, will lead to a paradigm shift that removes automobile emissions from the environmental equation. Having introduced the world's first mass-produced fuel-cell electric passenger vehicle, the ix35, and the second-generation fuel cell electric vehicle, the NEXO,Hyundai is now leveraging decades of experience, world-leading fuel-cell technology, and massproduction capability to advance hydrogen in the commercial vehicle sector with the XCIENT Fuel Cell," he added.

Question

1. What are the factors that will determine the value Hyundai Motor captures from this innovation?

2. Hyundai has chosen to be a leader in this technology. What are the advantages and disadvantages to Hyundai of being a first mover?

3. What role will network externalities and standards play in the success of this innovation?