Long at the forefront of eco-car development, Japanese automakers have now taken the lead in commercializing environmentally friendly fuel cell vehicles that run on hydrogen. In December 2002 Toyota Motor Corp. and Honda Motor Co. became the first companies in the world to market fuel cell vehicles when they leased some cars to government agencies and universities in Japan and the United States. This year they will start leasing vehicles to corporate users, and Nissan Motor Co. plans to follow suit by the end of 2003. Foreign automakers are also gearing up to enter the fray. DaimlerChrysler is to begin sales of fuel cell cars and trucks this year, while Ford is considering entering the market in 2004. The world's biggest automaker, General Motors, has set a target of selling 1 million fuel cell vehicles in 2010. The focus of competition among the world's leading manufacturers is shifting from research and development to practical application and marketing. The battle to set the global standard for fuel cell vehicles is well and truly underway.

Leases to Public Agencies and Universities
Fuel cell vehicles are fitted with a stack of fuel cells that produce electricity by making hydrogen and oxygen react. This electricity is used to power a motor, which propels the vehicle. Thanks to this system, these ultraclean vehicles do not emit any carbon dioxide - the primary culprit behind global warming - or other pollutants like nitrogen oxides.

Toyota effectively set the current global standard for eco-cars by pioneering hybrid vehicles that run on a combination of an electric motor and a gasoline engine. In a further effort to seize the initiative in environmentally friendly, low-pollution technology, the firm has spent close to ¥1 trillion ($8.3 billion at ¥120 to the dollar) and employed more than 400 people in its research and development of fuel cell vehicles. Honda, meanwhile, has demonstrated its commitment to developing fuel cell cars by actively pursuing R&D tie-ups with Ford and the Canadian firm Ballard Power Systems.

The two Japanese automakers decided to drive their fuel cell programs into the commercial market through leased sales, and on December 2, 2002, they delivered five cars (four Toyotas and one Honda) to the Japanese central government. The cars are being leased out at a monthly cost of ¥1.2 million each ($10,000) for the Toyotas and ¥800,000 ($6,667) for the Honda. The companies have also agreed to lease vehicles in the United States; Toyota will loan two vehicles to the University of California and Honda five to the City of Los Angeles. The first of each of these was also delivered on December 2.

Both the Toyota and Honda models run on hydrogen pressurized to 350 bars and boast performance close to that of cars that run on gasoline. The Toyotas seat five people, can drive continuously for 300 kilometers on one filling of hydrogen, and have a top speed of 155 km per hour. The Hondas have similar specs, seating four people and boasting a range of 355 km and a top speed of 150 km per hour.

Prime Minister Jun'ichiro Koizumi has suggested that all government vehicles be switched to these and other kinds of low-emission models within the next three years. At a ceremony to mark the delivery of the first fuel cell cars he gave the breakthrough technology his full backing, saying, "Toyota and Honda have taken the lead in getting fuel cell vehicles onto the market, achieving this feat even quicker than expected. I have high hopes for the future activities of Japanese firms in further developing this technology."

Toyota and Honda have both decided to begin sales of fuel cell vehicles to Japanese and American corporate buyers, with Toyota planning to sell 20 vehicles a year and Honda 30 over the next three years. Meanwhile, Nissan began road-testing its own fuel cell vehicles at the end of 2002 and plans to begin sales by the end of 2003.

Overseas Automakers Join the Fray
Have fallen behind Japanese firms in the fuel cell race, foreign carmakers are striving hard to make up lost ground. DaimlerChrysler plans to begin sales of fuel cell cars and trucks this year. It aims to sell a total of 60 cars in America, Europe, Japan, and Singapore and hopes to supply fuel cell buses to 10 major European cities. Ford is also making preparations with a view to starting sales of fuel cell vehicles in 2004.

General Motors conducted the first road tests of its fuel cell vehicles in late 2002 in Monaco and will begin joint tests of commercial models with the world's largest international air courier firm, U.S.-based FedEx Corp., in June 2003 in Tokyo. GM will be lending delivery vehicles to FedEx Express in order to monitor the vehicles' durability and reliability. According to GM Japan, technically the vehicles are ready to retail at any time, but when the company does commercialize them - a step slated for 2010 - it intends to market them "at a price that is within reach for general consumers" in order to achieve its sales target of 1 million units.

Many issues need to be resolved before fuel cell vehicles enter everyday use, such as the high development and production costs (which currently run to tens or even hundreds of millions of yen per vehicle), the drop in electricity generation experienced in cold weather, and the lack of facilities for refueling with hydrogen.

Having been the first to bring fuel cell vehicles to market, Japanese automakers have achieved a major milestone in environmentally friendly motoring. People will be expecting them to continue to set the standard for eco-cars in the years to come.