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Japan's Backing To Fuel-Cell Cars Could Benefit Toyota's New Model 27-06-2014

Toyota Motor Corp will start building a new fuel-cell vehicle in December this year, earlier than previously planned. The Japanese automaker first revealed plans for the vehicle, a four-door Sedan, at the Tokyo Motor Show last year. In 2010, Toyota contracted Tesla to supply all electric power trains for use in its future cars and SUVs. The company started the use of these power trains in the $50,000 RAV4 SUV. However, sales of the car have been poor and Toyota terminated the deal with Tesla Motors earlier this year, but the company is keeping its 3% stake in Tesla for the time being. The termination of the deal with Tesla and the announcement of the fuel-cell car signals a shift in Toyota strategy with respect to alternative vehicles. The Japanese government is planning to offer strong assistance to help fuel-cell vehicle technology achieve commercial viability as Toyota Motor Corp and Honda Motor Co prepare to launch hydrogen-powered cars next year. In this analysis, we list out the ways in which Government regulation in Japan can help drive a push towards hydrogen-powered vehicles.
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