Toyota, BMW To Expand Fuel Cell Vehicle Tie-up In Hydrogen Push

Toyota Motor Corp. and BMW AG will expand their collaboration in the development of fuel cell vehicles (FCVs), sources familiar with the matter said, as they aim to increase the competitiveness of their hydrogen-powered cars, Kyodo News reported.

Toyota is a leading provider of FCVs, having launched the Mirai, the world's first mass-produced FCV, in 2014. I Photo: Toyota

Under the enhanced partnership, expected to be announced on Sept. 5, Toyota will provide key components such as hydrogen tanks to BMW, which will, in turn, manufacture and sell mass-produced FCVs in the coming years.

The expanded collaboration aims to standardize components and reduce the cost of FCVs, which are seen as a promising option for achieving carbon neutrality but have yet to gain widespread popularity due to their high prices.

The two automakers first agreed to a partnership on FCVs in 2012 as part of their efforts to develop greener cars amid tightening environmental regulations.

Toyota is a leading provider of FCVs, having launched the Mirai, the world's first mass-produced FCV, in 2014.

However, FCV sales account for only a small fraction of Toyota's overall vehicle sales, which exceed 10 million units annually. As of June this year, the Japanese automaker had sold about 26,000 units of the FCV since its launch, according to the company.

One reason for this is that the Mirai sells for over 7 million yen ($48,300), significantly higher than the average price of a car in Japan, which stood at 2.64 million yen in fiscal 2023, according to an industry organization, Mainichi Japan reported.