Honda Halts Hydrogen Fuel Cell Vehicle Production Amid Profitability Decline... Initiates Restructuring

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Honda will cease production of hydrogen fuel cell vehicles (FCVs) within this year. Along with this, as part of restructuring, production of gasoline vehicles with low sales, the Odyssey and Legend models, will also be discontinued. However, Honda plans to continue developing FCVs in collaboration with the American company General Motors (GM) while focusing on electric vehicles.

According to the Nihon Keizai Shimbun on the 16th, Honda has decided to stop production of the FCV "Clarity Fuel Cell" within this year. Additionally, production of the gasoline luxury sedan Legend and the premium minivan Odyssey, which have been experiencing poor sales, will also be halted.

Honda's decision aims to streamline unprofitable models and concentrate on electric vehicles in the future. The FCV launched in 2016 was priced at 7.83 million yen (approximately 79.58 million KRW), making it expensive, and the limited hydrogen supply infrastructure led to sluggish sales. The cumulative number of FCVs sold in Japan and the United States is about 19,000 units.

The Nihon Keizai explained, "Toyota also launched the FCV 'Mirai' in 2008 but has struggled due to high prices and a lack of charging stations," adding, "Manufacturers are expanding hydrogen fuel cell vehicles into commercial sectors such as buses and trucks."

Furthermore, Honda has decided to close its production base in Saitama Prefecture within this year, and production of vehicles manufactured there, including the Clarity, Legend, and Odyssey, will be discontinued. The Legend ceased production in 2012 but was revived as a hybrid vehicle in 2015, yet it failed to gain traction. At its sales peak in 1991, about 20,000 units of the Legend were sold, but only 216 units were sold in 2020. The Odyssey sold approximately 126,000 units at its peak in 1995 but has struggled against top-tier minivan models like Toyota's Alphard.

However, Honda plans to continue FCV research and development in cooperation with GM.

Meanwhile, Honda aims to convert all new vehicles sold worldwide to zero-emission electric vehicles by 2040.

This content was produced with the assistance of AI translation services.