Hyundai Motor, ‘World’s No. 1’ in Hydrogen Vehicles
Toyota Begins to Counter
Even Collaborating with BMW
Japan’s Toyota and Germany’s BMW are set to deepen their collaboration in the hydrogen vehicle sector. BMW is gearing up to mass-produce hydrogen vehicles, while Toyota will provide essential components such as hydrogen tanks. This partnership reflects a strategic shift from the EV market, where growth has slowed, toward the burgeoning hydrogen vehicle sector, aiming to enhance its presence in next-generation eco-friendly technologies.
On Tuesday, Japan’s Nihon Keizai Shimbun reported that Toyota and BMW had agreed to form a comprehensive alliance to lead the hydrogen fuel cell vehicle (FCV) market. A formal business agreement is expected to be signed on September 3, 2024, with the details of the deal to be announced on September 5. Hydrogen cars, which generate electricity through the reaction of hydrogen and oxygen, are highly environmentally friendly, emitting only water during operation. Hyundai Motor Company of South Korea is the global leader in this field.
Cooperation between Toyota and BMW, who have been in the hydrogen vehicle for a long time
Toyota is set to supply all essential components for BMW’s hydrogen vehicles, including hydrogen tanks and fuel cells, while BMW will handle the drive system. The two companies have collaborated on hydrogen car technology since 2012, providing only fuel cell components. Toyota introduced its hydrogen vehicle, the Mirai, in 2014, following in Hyundai’s footsteps.
BMW is developing a hydrogen vehicle, the iX5 Hydrogen, based on its X5 SUV model. The iX5 Hydrogen can store up to 6 kg (13.2 pounds) of hydrogen in two tanks, with a refueling time of just 3 to 4 minutes. It offers a range of over 500 km (311 miles) on a single charge. BMW plans to integrate this vehicle with Toyota’s hydrogen system to reduce costs further and aims to start selling it within a few years.
EV market stagnant
The rising hydrogen vehicle market
Toyota and BMW have also committed to working together to build hydrogen infrastructure in Europe, such as hydrogen refueling stations. As of the end of last year, Europe had 630,000 EV charging stations but only 270 hydrogen refueling stations. Toyota’s Mirai, a leading hydrogen vehicle, is priced at over $48,261. The Nihon Keizai Shimbun has predicted that by sharing key components, Toyota and BMW will be able to lower the costs of hydrogen vehicles.
Globally, the growth of the EV market has slowed compared to previous years. As a result, hydrogen vehicles are regaining interest, with automobile manufacturers actively exploring this sector. Unlike electric cars, which can take tens of minutes to charge even with rapid chargers fully, hydrogen vehicles offer a significant advantage with their much shorter refueling time.
Hyundai Holds the Top Spot Globally, but High Prices Remain a Challenge
According to SNE Research, global hydrogen car sales are projected to drop by about 34% in the first half of 2024 compared to 2023. This decline is primarily attributed to delays in the launch of new vehicle models. Currently, Hyundai leads the market, followed by Toyota. In China, however, the focus is shifting towards the commercial vehicle sector, with a growing share of the hydrogen vehicle market.
One major challenge for hydrogen vehicles is their high cost. For instance, Hyundai’s Nexo is priced around $52,403, while Toyota’s Mirai costs over $48,261. Experts suggest that reducing these prices will be crucial for future market growth. To address this, Toyota and BMW are collaborating to lower costs and advance the hydrogen vehicle sector.
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