Radical alternate EV tech faltering: Toyota and Honda's hydrogen projects stuttering as alternative electric technology suffers sales smashing in overseas

Tim Gibson

News Journalist

3 min read

The once highly-promising hydrogen-powered car technology now appears to be faltering as it lags behind other new energy technologies, according to reports. 

Nikkei Asia has reported annual sales of hydrogen vehicles decreased by more than 80 per cent since 2021, with the supporting infrastructure available also decreasing.

Hydrogen vehicles more commonly take the form of fuel cell vehicles (FCV), using compressed hydrogen gas to power a fuel cell, which converts hydrogen into electricity to power it. This method means only water is emitted into the atmosphere, while offering similar refuelling times and driving range to internal combustion vehicles, but with EV performance.

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This technology is only found in a few vehicles, such as the Toyota Mirai sedan and the Hyundai Nexo SUV. 

Honda was one of the first brands to explore the potential of hydrogen technology more than 20 years ago, with its FCX sedan. 

Toyota has been heavily investing in hydrogen-powered cars, recently focussing on a different angle: hydrogen-fuelled internal combustion engines. This system repurposes compressed hydrogen as an injectable substance into the combustion chamber without emitting CO2.

Charging times for electric vehicles remain a key point of discussion in their viability for mass usage, which makes this alternative hydrogen technology an interesting prospect.

Hydrogen-powered vehicles have experienced a substantial drop off in sales since introduction in 2021.
Hydrogen-powered vehicles have experienced a substantial drop off in sales since introduction in 2021.

It now looks like the refuelling benefits over EVs are becoming more of a moot point with the scarcity of hydrogen refuelling points and their limited uptake. 

Australia does not have a hydrogen model on sale to the general public, with only some available on leasing deals, including the Mirai and Nexo. There are less than 20 hydrogen refuelling stations currently in Australia.

According to Nikkei Asia, new FCV sales in Japan decreased by 83 per cent last year in comparison to 2021, with only 431 units finding new homes.

These stuttering sales numbers are causing major players to retreat in their hydrogen plans, including Stallantis that discontinued development citing "no prospects of mid-term economic sustainability."

Honda and General Motors have also severed ties on their hydrogen joint-venture, which has been running since 2013 and included production of the CR-V e:FCEV. 

This does not mean hydrogen is off the cards, with Toyota and Hyundai still proceeding with FCV projects over the next two years. Hyundai in particular intends to double down on the technology, with a new-generation Nexo having already launched in its South Korean home market.

Hyundai Nexo
Hyundai Nexo
Tim Gibson

News Journalist

Tim couldn't get enough of UK Top Gear as a kid, which sparked his passion for cars. Tim’s journalism career began at age 15 as a local reporter for Football South Coast before he branched into live commentary with Football New South Wales. He reports on national competitions and the Socceroos with Football Australia, and also covered the 2023 FIFA Women’s World Cup with The Football Sack. He studied a Bachelor of Journalism and a Bachelor of Laws at the University of Wollongong, featuring in the top five per cent of students, and graduating with distinction. Tim completed an internship in the ABC’s Wollongong office, then undertook regular paid shifts until he completed his degrees. Tim started his full-time journalism career at CarsGuide, working as a News Journalist covering a range of automotive topics from electric vehicles to legal issues. Education University of Wollongong | Bachelor of Journalism with distinction | 2020-2025 University of Wollongong | Bachelor of Laws | 2020-2025 Featured Publications Football South Coast | 2018-present Football New South Wales | 2019-present South Coast Flame FC | 2021-2022 Football Australia | 2023-present UOW TV | 2021-2025 The Football Sack | 2022-2023 ABC Illawarra | 2023-2025 CarsGuide | 2025-present
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