21 June 2021
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3 min read
The Honda Clarity fuel cell vehicle was launched in 2016 | Credit: Honda
Japanese car maker confirms it is to discontinue its pioneering fuel cell model, but insists hydrogen models are still part of its future plans
The hydrogen automotive market received a blow late last week, after Honda announced it is to discontinue its flagship fuel cell model following disappointing demand.
In a statement, the Japanese automaker announced it was ending production of its hydrogen fuel cell and plug-in hybrid Clarity car models this summer, although the company insisted that hydrogen fuel cell technology would continue to play a "key role" in its pivot toward a fully zero emission vehicle range.
"We are evolving our strategy with a focus on increased application of our two-motor hybrid system to core models in advance of the introduction of our first volume battery electric vehicle (BEV) models in 2024," the statement reads. "Consistent with this strategy, Honda will conclude production of the Clarity Plug-in Hybrid and Clarity Fuel Cell in August 2021."
Reports have argued the firm's flagship hydrogen car has been axed due to weak demand, pointing to the lease-only vehicle's high sticker price and the limited availability of hydrogen refuelling infrastructure in the markets it was launched in. Since debuting in 2016, Honda has sold just 1,900 units of the hydrogen sedan worldwide, according to a report from news agency Nikkei Asia.
But Honda stressed the Clarity range had "played a valuable role in advancing Honda's portfolio approach to electrification" as it pledged to deliver a fully zero emission vehicle line by 2040.
"Now, with a commitment to carbon neutrality by 2050, Honda has set a target to make 100 per cent of our vehicles sales battery-electric (BEV) or fuel cell electric (FCEV) by 2040," the company said.
Honda insisted the discontinuation of the Clarity is not the end of the road for its hydrogen fuel cell vehicle business, noting that it planned to make "significant investments in fuel cell infrastructure and battery technology".
While the carmaker will next year close the Sayama plant near Tokyo where the Clarity models are produced, it is continuing to work with US auto giant General Motors on the production of battery systems for hydrogen fuel cell vehicles through a joint venture established in 2017.
Honda is one of a clutch of automakers with plans to accelerate the development of the emerging hydrogen-powered vehicle market, alongside Toyota, Ineos Automotive, and Riversimple. The firm's decision to axe its hydrogen car also came in the same week as British car maker Jaguar Land Rover announced it was exploring hydrogen fuel cell technology for a zero emission version of its 4&4 Defender.
However, experts remain divided on whether hydrogen could emerge as a convenient 'drop in' replacement for petrol and diesel or whether the passenger vehicle segment is destined to be dominated by fast-improving battery electric vehicles (EVs). Some argue hydrogen technologies should be reserved for heavy transport and industrial processes less suitable to electrification, and have warned most hydrogen produced today is made from natural gas, and therefore would fail to deliver the near zero emissions required from the road transport sector as part of the transition to net zero emissions.
Leading analyst and Bloomberg New Energy Finance founder Michael Liebreich said Honda's decision provided further evidence that EVs were set to dominate the auto market.
In a moment of Clarity, Honda pulls the plug on its fuel cell car. Failure is never something to celebrate, but nor is wasting money on dead end transport solutions (taxpayer money at particular risk of being thrown at H2 fuelling stations right now). https://t.co/TUbOhT2hBk
— Michael Liebreich (@MLiebreich) June 20, 2021
