The company, which becomes the first mass manufacturer of such vehicles, said it plans to make hydrogen-fueled versions of its Tucson ix sport utility vehicles, South Korea's Chosun Ilbo reported.
The company was quoted as saying it is two years ahead of other global automakers who are seeking to start mass production of hydrogen-fueled cars.
The company said its new car will travel up to 369 miles on a single charge.
Yonhap News reported Hyundai plans to sell 15 hydrogen cell cars to Denmark and two more to Sweden by April. The company also plans to sell about 1,000 units around the world by 2015.
Yonhap said the new car will emit only water as it converts hydrogen into electricity, thus reducing dependence on internal combustion engines blamed for producing greenhouse gases.
"We expect to realize an environmentally friendly era more quickly through the mass production of hydrogen fuel cell cars for the first time in the world," Hyundai Motor Vice Chairman Kim Eok-jo was quoted as saying.
Yonhap said South Korea has 13 refueling stations for hydrogen.
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