According to Nikkei, on June 30, Honda Motor Company announced a plan to postpone the start of production of next-generation fuel cell modules in Japan in fiscal year 2027, but did not specify when. At the same time, the company will also formulate fuel cell modulesCapacityCut by about 30% because high costs limit the popularization of fuel cell vehicles.
Image source: Honda Motor official website
According to Honda’s original plan, it was expected to receive a subsidy of up to 14.7 billion yen (about $102 million) from Japan’s Ministry of Economy, Trade and Industry to start production (fuel cell modules) at a plant in Moka, Tochigi prefecture, Japan. However, due to changes in time frame and scale, the company has decided to abandon the above subsidies.
Fuel cell vehicles operate on energy generated by a chemical reaction between hydrogen and oxygen, which does not emit carbon dioxide in the process. But these vehicles and the hydrogen fuel they use are still expensive and less competitive than gasoline-powered vehicles, and cost limits their success.
Honda’s planned next-generation fuel cell module was designed to cut manufacturing costs in half and double its lifespan. Due to changes in production plans, the target of selling 60,000 units in 2030 and hundreds of thousands of fuel cell vehicles after 2035 may need to be lowered.
Isuzu plans to launch a large fuel cell truck jointly developed with Honda around 2027. The company said it could not provide a clear explanation of future product plans, but at this time “future plans have not been affected”。
Fuel cell trucks are seen as a potential driver for the adoption of fuel cell vehicles. and pureElectric vehicleCompared with batteries, hydrogen has a higher energy density and is more suitable for long-distance driving. However, the number of hydrogen refueling stations in Japan and California is decreasing due to high maintenance costs and low utilization. In addition, globally, investments related to hydrogen production are declining, which is also a factor in the poor outlook for fuel cell vehicle demand.
Honda aims to have all new vehicles sold by 2040 be zero-emission models, namely electric vehicles and fuel cell vehicles. The company believes that the fuel cell system market “will continue to grow in the future” and plans to continue sales activities in passenger cars, commercial vehicles, construction machinery and other fields.
