Toyota accelerates hydrogen plans, goes slow on Electric Vehicles

Leading global car makers BMW and Toyota have tied up to develop hydrogen-power cars, taking a big leap away from the traditional fossil fuels. In a big move to shape the future of sustainable transportation, the two auto majors announced that the first hydrogen-powered vehicle will be released in 2028. In a joint announcement, the companies said that the new hydrogen cars will use powertrains, comprising the engine and the transmission, developed in tandem by them.

A Hydrogen Partnership

The partnership to develop hydrogen-powered electric vehicles, or fuel-cell electric vehicles (FCEVs), is targeted at turning a relatively nascent technology into a mainstream market offering.

Hydrogen-powered cars differ from traditional electric vehicles (EVs) by using electricity generated through a chemical reaction between hydrogen and oxygen within a fuel cell, rather than relying on electricity stored in batteries. "It is basically electric driving," explained Michael Rath, BMW's Vice President of Hydrogen Vehicles, emphasizing that this technology provides an alternative for drivers who may not have access to charging stations or need faster refuelling options. Hydrogen cars, much like conventional internal combustion-engine vehicles, can be refuelled quickly at specialized stations, offering convenience for long-distance drivers and those concerned about towing capabilities or extreme temperatures affecting battery performance.

BMW has said it does not view hydrogen vehicles as direct competitors to battery-powered EVs but sees them as complementary options. The company believes that offering a variety of clean energy vehicles will better serve the diverse needs of consumers. However, one of the biggest challenges remains infrastructure. Hydrogen refuelling stations are far scarcer than electric charging stations, but both BMW and Toyota have said that they are committed to helping expand the network and investing in the growth of the hydrogen economy. Safety concerns surrounding hydrogen, which is highly flammable, will also be appropriately be addressed through extensive crash testing.

Toyota Slows Down EV Production

While BMW pushes hydrogen technology, Toyota is scaling back its electric vehicle production. In a move that surprised the industry, the Japanese automaker has cut its global EV output forecast for 2026 by 30 per cent, reducing its target to 1 million vehicles from 1.5 million. This decision comes in response to a slowdown in global demand for electric cars, a trend that has affected many automakers as the initial burst of enthusiasm for EVs has begun to cool.

Toyota’s revised production plan still represents a significant increase from its current output, but the decision to slow down comes after the company sold approximately 100,000 EVs in 2023 and only 80,000 from January to July of this year. Under the new strategy, Toyota aims to produce just over 400,000 EVs in 2025, with plans to double that in 2026.

The Future of Clean Transportation

The partnership between BMW and Toyota is a big move towards greener technologies as adoption of hydrogen as a fuel has been severely handicapped due to prohibitively high costs. While electric vehicles have dominated the conversation in recent years, the collaboration on hydrogen-powered cars reflects a belief that no single solution will dominate the market. Instead, a combination of options – battery-electric, fuel-cell, and hybrid vehicles – will likely define the next era of transportation.