KATHMANDU: Toyota Motor Corporation continues to invest in hydrogen fuel-cell vehicles despite low global demand. The company is maintaining a multi-path strategy instead of focusing only on battery EVs, writes FT.
Global hydrogen passenger car sales crossed just 16,000 units last year. In comparison, electric vehicle sales exceeded 12 million units. This highlights the wide gap between the two technologies.
Among automakers, Hyundai Motor Company leads hydrogen car sales with 6,861 units. Toyota sold 1,168 units of its Toyota Mirai and Toyota Crown, marking a 39.1 percent decline year-on-year. Honda Motor Company has also re-entered the segment.
Hydrogen cars still face major challenges. There are fewer than 1,400 hydrogen refueling stations globally, compared to over 5.7 million EV charging points. Production costs are also higher, leading to expensive vehicle prices.
However, hydrogen may still find use in commercial transport. Fixed routes and high daily usage can improve the economics of refueling stations. A station serving around 200 trucks per day could process over 8,000 kg of hydrogen.
The Japanese government is working with Toyota to deploy hydrogen trucks at scale. This could create a new revenue stream in the commercial segment.
Toyota’s strong hybrid business continues to support its broader strategy. Hybrids generate steady profits, while EVs remain a high-growth but capital-intensive segment.
Hydrogen remains a long-term and uncertain bet. However, Toyota sees potential in areas where battery EVs are less practical.
The company has previously benefited from keeping multiple technologies. Its hybrid strategy proved successful even when many expected a full shift to EVs.
