Toyota is reportedly targeting the hydrogen fuel cell vehicle markets in Europe and China.
According to a new Reuters report, the automaker’s decision to expand beyond the North American passenger car market was prompted by its goal to sell 200,000 hydrogen vehicles by the year 2030. For context, it sold only 3,900 in 2022, representing a tiny fraction of its 9.5 million total vehicle sales globally.
Last month, Toyota said in a press release that the hydrogen markets in Europe, China, and North America will be by far the largest in 2030, and that the fuel cell market is expected to expand rapidly overall. In turn, the automaker recently established a new unit called the Hydrogen Factory, promoting business on three axes:
1. The first was localizing R&D and production in countries within major markets. Toyota said it would accelerate these efforts by establishing local bases, mainly in Europe and China. At the end of 2020, the automaker established a Fuel Cell Business Group in Europe to oversee hydrogen activities across the region.
2. The second was strengthening alliances with leading partners, delivering more affordable fuel cells to customers by “consolidating sufficient quantities through alliances.”
3. The third was “competitiveness and technology,” working on the “innovative evolution of competitive next-generation fuel cell technologies,” with a goal of achieving a 37% cost reduction in the technology.
“The price of hydrogen is still very high,” Toyota said. “In order to promote the widespread use of hydrogen, Toyota will continue to work with its partners to contribute in producing, transporting, and using hydrogen.”