Hydrogen Fuel Cell Vehicles: Why Toyota, BMW, and Hyundai Are Going Against the Current

The race to zero emissions is heating up, and automakers are starting to pick sides—especially when it comes to hydrogen fuel cell vehicles. While some big names like Stellantis and Renault are cooling on hydrogen and going all-in on battery electric vehicles (BEVs), others like Toyota, BMW, and Hyundai are pressing forward, especially for heavy-duty and commercial uses.

One Industry, Two Directions

In 2025, Stellantis and Renault made waves by scaling back their hydrogen plans, citing high production costs, slow infrastructure growth, and doubts about near-term profitability. Instead, they’re throwing their weight behind BEVs, which are seeing faster adoption thanks to growing public interest and a more developed charging network. Stellantis—created when Fiat Chrysler and PSA Group merged—is now laser-focused on electric options it sees as more viable in the short term. Renault is shifting gears too, doubling down on battery technology that’s already core to its lineup.

But it’s not a universal retreat. Toyota is making it very clear—it’s not backing away. The company recently revealed its third-generation fuel cell system, built with trucks and commercial vehicles in mind. Toyota’s long been a believer in a multi-pathway approach: different powertrains for different needs, from hybrids and BEVs to hydrogen. BMW is still exploring hydrogen tech through pilot programs and R&D. And Hyundai is forging ahead with commercial fuel cell vehicles, drawing from its strong background in both battery and hydrogen technologies.

BEVs Dominate… For Now

Let’s be honest—BEVs are dominating headlines for a reason. They run on electricity stored in large batteries, don’t emit anything from the tailpipe, and the charging infrastructure is finally catching up, especially in Europe and North America. With that kind of momentum, it’s no wonder automakers like Renault and Stellantis are putting more chips on the battery side of the table.

But not everyone’s convinced that batteries can handle everything. That’s where hydrogen steps in—particularly for vehicles that cover long distances, operate around the clock, or need to refuel quickly. The latest Toyota fuel cell system is tougher, more efficient, and designed to go head-to-head with diesel in commercial applications like buses and big rigs.

Hydrogen: Solving the Tough Stuff

While battery electric vehicles thrive in urban and suburban settings, hydrogen fuel cells come into their own in tougher environments. Think long-haul trucks, refrigeration fleets, and backup power for places that can’t afford downtime. That’s where Toyota’s tech really shines. At the 2025 Fuel Cell Seminar, one Toyota exec put it plainly: “Hydrogen opens doors where batteries can’t go.”

BMW is taking a measured approach, looking at hydrogen as a long-game play for luxury and high-end commercial applications. Meanwhile, Hyundai is rolling out hydrogen trucks and laying the groundwork for broader fuel cell adoption across Asia and beyond. For these players, automotive decarbonization isn’t about picking a single winner—it’s about using the right tool for the job.

Bigger Picture, Wider Impact

This diverging strategy is having ripple effects across the globe. With Renault and Stellantis stepping away from hydrogen, some are worried that Europe’s already slow-to-grow refueling network could take a hit. That might stall innovation—or at least slow momentum in niche commercial markets. In response, companies like Toyota and Hyundai are starting to team up with industry partners to push for unified hydrogen standards and create dedicated transport corridors.

The aftershocks are undeniable. Investment patterns are shifting, and so is R&D. While BEVs may continue to grab the spotlight in Europe and North America, hydrogen research is likely to get a boost in places like Japan and South Korea, where government support and infrastructure development are more aggressive.

In the near term? Expect BEVs to keep charging ahead. But don’t count hydrogen out—it’s far from off the table. As one Hyundai rep put it, “It’s not about choosing sides. It’s about having all the right tools to tackle different challenges.”

Global Strategies, Local Moves

What automakers are choosing says a lot about the markets they’re in. Toyota is still building key fuel cell components in Japan, benefitting from years of hydrogen know-how. Hyundai is leaning into South Korea’s national push for hydrogen-powered mobility. BMW is keeping its hydrogen R&D tight to its German engineering roots. Meanwhile, companies like Renault and Stellantis—with big stakes in France and multinational operations—are trimming their hydrogen bets based on cost realities and consumer trends.

The auto world may be heading down different paths, but the destination’s the same: a clean, zero-emissions future. Whether it’s batteries or hydrogen vs BEV, one thing’s clear—automotive decarbonization isn’t slowing down.