Toyota (TM) expects the cost of producing hydrogen fuel cells to fall dramatically over the next seven years.
The Japanese auto giant, which hopes to have the first fuel cell in serial production by 2015, says that it expects the cost of building the power system to drop to just over $25,000 by 2020, allowing it it retail hydrogen-powered vehicles for between $50,000 and $100,000, AutoNews notes.
A Toyota executive predicted that the prices of hydrogen powered cars will fall below those of electric vehicles and approach those of plug-in hybrids by 2020. The company’s first hydrogen fuel cell system, made for a concept vehicle, cost almost $1 million each in 2007.
The company is looking to introduce a hydrogen fuel cell sedan in 2015, priced for high end consumers. It estimates total sales for the vehicle of between 5,000 and 10,000 units, worldwide.
Shares of Toyota fell more than 1% in Monday morning trading.