Hydrogen HiLux? Why Toyota believes an all-electric future is a mistake and hydrogen still has a big role to play

Battery electric vehicles appear to have the upper-hand in the battle to replace fossil fuels, but don't dismiss hydrogen just yet.

That's the view of one of Toyota Australia's most senior executives, who believes the car industry cannot offer a 'one size fits all' strategy for electric vehicles. Crucially, despite Europe's decision to ban petrol, diesel and hybrid cars by 2035 with an obvious focus on electric vehicles, Sean Hanley, vice president of marketing and sales for Toyota, believes there is still an opportunity for hydrogen fuel-cell vehicles to play a major role in Australia.

Toyota sold more than 70,000 hybrid vehicles in 2022 but is yet to introduce an all-electric model, though that will change later this year with the arrival of the bZ4X. Despite this, Toyota has offered its hydrogen fuel-cell-powered Mirai to selected fleets since 2016.

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Hanley said Toyota's goal as it transitions towards its goal of a carbon-neutral future is to ensure it offers vehicles that are suitable for its breadth of customers, both in terms of usability and cost, and doesn't believe all-electric cars are a viable option yet.

"We believe that you have to offer solutions that appeal to the masses, that are practical for the masses, that are affordable for the masses, but still deliver on getting us to that carbon-neutral future over time," Hanley told CarsGuide.

While hydrogen remains an expensive and limited option in Australia, with no publicly available infrastructure, Hanley is convinced it has a role to play. Pushed on hydrogen's suitability for the so-called "masses" Hanley is confident that it will be a viable option for the Australian market. Specifically, he believes it's better suited to larger vehicles such as the HiLux, LandCruiser and commercial vehicles, questioning the suitability of an all-electric powertrain for such vehicles.

"Because hydrogen, by nature of its availability, can do a lot more with commercial vehicles," he said. "It can tow heavy loads. It doesn't have any range anxiety. There's plenty of it. Now you can debate how you make it, that's true, but if you make it out of renewables it's clean. The only thing stopping it is infrastructure. That's the only thing."

Toyota has offered its hydrogen fuel-cell-powered Mirai to selected fleets since 2016.

Adding hydrogen infrastructure around Australia would seemingly be the greatest challenge at this point, as it requires bespoke high-pressure filling stations. It would also be starting at a disadvantage to electric vehicle public charging, which has been expanding rapidly around Australia in recent years; and will soon include 232 extra chargers at Toyota dealers across the country.

But, again, Hanley believes that is an obstacle that can be overcome.

"Well, it's a big investment. But I'm sure if we went back 100 years when the horse and cart was running around, someone probably drove down in the first car and somebody would have said 'there's nowhere to fill that thing up,'" Hanley said.

Toyota isn't alone in considering hydrogen fuel-cell vehicles - Hyundai already offers the Nexo SUV in Australia and just recently BMW revealed plans for a global trial of hydrogen-powered iX5 vehicles. However, if the technology is to get widespread acceptance amongst buyers and infrastructure suppliers it will likely need more brands to get involved.

Hanley said Toyota’s goal as it transitions towards its goal of a carbon-neutral future is to ensure it offers vehicles that are suitable for its breadth of customers.

While Hanley is an advocate for hydrogen fuel-cell vehicles, he is adamant that Toyota will offer a range of technologies in Australia including hybrids, all-electric and possibly carbon-neutral fuel.

"In time it will happen, but it's not short-term," Hanley admits. "That's why you've got to offer a diverse range of technologies."

He added: "There's all these other options, Toyota's simply saying 'don't close the door' and provide the market with what the market will take, which will eventually get you to a carbon neutral future."