Honda: Fuel-Cell Cars Need Price Reduction

June 17, 2008 7:02 a.m. EST

Tochigi, Japan (AHN) - The current prices of fuel-cell cars are in need of further reduction for the vehicles to obtain wider market acceptance, said Honda Motor Co. president Taeko Fukui.

The statement came as an address to the struggle of the fuel-cell cars in an eco-driven market turning instead towards gasoline-electric hybrid vehicles. The low number of service stations that could cater to the fuel-cell vehicles limits production, and in effect hikes up the production costs.

Mr. Fukui added that in response to this, Honda will be releasing a third model of its fuel-cell model the FCX Clarity, and will come with a tag price of tens of millions of yen - an amount far less than the few-hundred-million-yen priced models currently in the market.

However, he noted that the current market trends called for the vehicles to drop even below the 10 million yen mark in order to be an acceptable product for the greater market.

According to the company, the vehicle boasts a 280-mile capacity per tank, as well as well as a fuel efficiency that overtakes those of a gas-powered car or even a hybrid.

The vehicle's fuel cell produces a 100-kilowat maximum electricity level, giving it a zero-to-sixty acceleration capability in nine seconds, and a top speed of 100 miles an hour.

The car will find its way in the U.S. market by July, before making its first Japanese market appearance the months after.