Toyota (TM) to Sell Fuel Cell Vehicle Mirai as of Next Month
Toyota Motor Corporation (TM) announced that it will be selling the fuel cell vehicle, Toyota Mirai in Japan from Dec 15, 2014. In addition, the automaker will be launching the fuel cell vehicle in the U.S. and Europe by mid-2015. These vehicles will be marketed through Toyota and Toyopet dealers. With this, the automaker plans to gain an edge over other.
Toyota Mirai, the next generation vehicle, offers a recognizable design, better driving experience and powerful acceleration by the electric motor. The Mirai is also equipped with an exclusive telematics service which ensures a safe, secure and comfortable ride. The starting retail price of the vehicle in Japan will be ¥7.2 million. The Japanese government intends to offer a ¥2 million subsidy on fuel cell cars. Toyota expects to sell 400 vehicles in Japan and 300 vehicles outside Japan in the first year.
Toyota prefers fuel cell vehicles over the electric vehicles produced by Tesla Motors, Inc. (TSLA) and Nissan Motor Co. Ltd. (NSANY), as the former provide a longer driving range than the electric vehicles driven by lithium-ion batteries. In addition, Toyota Mirai’s price is competitive to Tesla’s Model S.
Fuel cell vehicles use compressed hydrogen gas. The Mirai uses the Toyota Fuel Cell System (“TFCS”), which features both fuel cell and hybrid technology. The TFCS is better than internal combustion engines as it does not emit CO2 or substances of concern (SOCs). Thus, the vehicle has a superior environmental performance and ensures convenience and driving pleasure similar to gasoline engine vehicles.
The Mirai can cover 650 to 700 kilometers (400–435 miles) on its two tanks of hydrogen in Japan. However, due to different driving conditions in U.S the vehicle covers 300 miles. Other automakers including Honda Motor Co., Ltd. (HMC) and Hyundai are also focusing on fuel cell vehicles. Honda will be launching the revamped hydrogen sedan in California in 2015, while Hyundai has begun the leasing of fuel-cell version of its Tucson sport-utility vehicle.
The hydrogen for the fuel cell vehicles can be produced through a wide range of natural resources along with man-made byproducts such as sewage sludge. It can also be generated from water. Compressed hydrogen has a higher energy density and is relatively convenient to store and transport.
However, prospective customers may initially hesitate in buying Toyota Mirai due to its high price and limited number of hydrogen filling stations. Nevertheless, the governments are subsidizing the construction of the filling stations. Toyota anticipates that it will take another 10 to 20 years for the Mirai sales to reach tens of thousands of vehicles per year. Initially, the sales of the vehicle will be restricted to the urban areas which have fueling stations.
Toyota has 30 filling stations in Japan covering Tokyo, Osaka and Nagoya cities in central and western Japan, and the northern part of Kyushu Island in the south. The automaker has also opened hydrogen filling stations in California in the U.S. The company also plans to open some fuel stations in the Northeast U.S, Germany and the U.K.
At present, Toyota has a pre-order of 200 Mirai vehicles. The order is mainly placed by the government agencies and companies preferring environment–friendly transport.
Toyota currently carries a Zacks Rank #1 (Strong Buy).
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