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Japan to sharply cut fuel cell vehicle prices by 2025

  • March 13, 2019
  • , Jiji Press , 7:32 a.m.
  • English Press

Tokyo, March 13 (Jiji Press) — A panel of experts at Japan’s industry ministry has adopted a plan to promote fuel cell vehicles by sharply cutting prices of the environmentally friendly automobiles by 2025.

Specifically, an updated roadmap for accelerating the use of hydrogen and fuel cell batteries, which was adopted at the panel’s meeting on Tuesday, includes a goal of reducing the price gap between fuel cell vehicles and hybrid vehicles to around 700,000 yen by 2025.

It also calls for speeding up technological development to cut costs of producing fuel cell batteries by 75 pct.

Fuel cell vehicles, which are powered by electricity generated through chemical reactions between hydrogen and oxygen, do not emit carbon dioxide, a major source of global warming, while running.

In Japan, Toyota Motor Corp. <7203> and Honda Motor Co. <7267> currently sell fuel cell vehicles. But they are expensive, due to high production costs, with a Toyota fuel cell vehicle model, for example, selling at about 7.6 million yen per unit, about 2.6 million yen higher than the price of a hybrid vehicle of a similar grade.

As of the end of last year, 2,926 fuel cell vehicles were in use in Japan. The industry ministry aims to boost the number to about 40,000 by 2020 and about 200,000 by 2025.

The ministry also plans to increase the number of hydrogen stations across the country from some 100 at present.

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