Hydrogen Fuel Cell Vehicles (HFCVs) continue to face an uphill battle for widespread adoption in the passenger car market, struggling to compete with the rapidly expanding battery electric vehicle (BEV) sector. Despite persistent investment from automakers like Toyota, Hyundai, and Honda, HFCVs are hampered by a severely limited fueling infrastructure, elevated vehicle and fuel costs, and intense market competition. This confluence of factors casts a shadow over their long-term viability in consumer transportation.

Historically, hydrogen-powered engines predate gasoline, with early demonstrations in the 19th century. However, HFCVs have remained a distant third behind gasoline and BEVs in market penetration. Currently, only three passenger HFCV models—the Toyota Mirai, Hyundai Nexo, and Honda CR-V e:FCEV—are available in the U.S., sold almost exclusively in California, the state with the majority of the nation's public hydrogen fueling stations. Other automakers, including GM and BMW, are testing HFCVs, while some, like Mercedes-Benz and Stellantis, have ceased development. Chris Liu, senior automotive analyst for new energy vehicles at Omdia, notes, “While the core technology is considered mature, with most components reaching high levels of readiness, critical barriers remain, particularly in cost and infrastructure.”

The most significant impediment is the sparse fueling infrastructure. As of June 2025, the U.S. boasts approximately 74,000 public EV charging stations, a stark contrast to just over 50 hydrogen fueling stations, predominantly in California. This disparity was exacerbated in early 2024 when Shell announced the closure of seven hydrogen stations in California, a significant setback for the Hydrogen Fuel Cell Partnership. Ivor John, a hydrogen fuel consultant, observed that efforts to expand nationally have “kind of stumbled” due to varying state dynamics. Furthermore, the high costs associated with hydrogen production, transportation, and storage contribute to expensive fuel. Sergey Paltsev, a senior research scientist for the MIT Energy Initiative, stated, “To gain traction with consumers, either these costs have to go dramatically lower, or some sudden issues with internal combustion and electric vehicles would arise to make these more established options less appealing.” Hydrogen fuel prices, sold per kilogram, have seen dramatic increases; for instance, True Zero, California’s largest supplier, boosted prices to $36/kg in 2023 from $13.14/kg less than three years prior, making a full tank for a Toyota Mirai potentially cost $175.

Beyond fuel, HFCVs typically carry higher sticker prices than comparable BEVs and ICE vehicles. The 2025 Honda CR-V e:FCEV, for example, starts at $50,000 with a 270-mile total range, while the 2025 Honda Prologue BEV starts at $47,400 with a 308-mile EPA-rated range. This growing cost disparity, coupled with the increasing availability and competitive pricing of BEVs, further undermines HFCV viability. Paltsev emphasized, “The cost disparity between EVs and FCVs is growing rather than narrowing.”

Despite these challenges in the passenger segment, hydrogen power shows greater promise in heavy-duty and commercial vehicle applications. Liu suggests, “In the commercial vehicle space, a more diversified refueling strategy is emerging, ranging from fast charging and battery swapping to hydrogen fuel cells.” Automakers like Toyota and Hyundai are actively collaborating with heavy-duty truck manufacturers, aligning with the strategic focus in countries like Korea and Japan to integrate HFCV technology into the logistics industry, where its unique advantages in range and rapid refueling can be more effectively leveraged.