April 19, 2025 – Toyota’s CEO has shocked the auto industry by claiming that a new hydrogen-powered internal combustion engine the company is developing could revolutionize the electric vehicle (EV) industry. It promises to deliver performance comparable to a traditional gasoline engine, but emits only water vapor and has the potential to significantly reduce emissions.

The new engine uses hydrogen as a fuel instead of lithium-ion batteries. It is expected to be an attractive option in areas with limited charging infrastructure. Since hydrogen can be produced from renewable energy sources, the technology is seen as having sustainability advantages. In addition, hydrogen refueling stations can be built faster than EV charging infrastructure.

However, industry experts say the claim is too ambitious. Currently, major automakers are focusing on improving battery performance, range, and charging time to take EV technology further. In addition, hydrogen infrastructure is still very limited, and the hydrogen production process can also be harmful to the environment – points that have been criticized a lot.

Toyota’s move to hydrogen technology is seen by some as an attempt to maintain its position in the market rather than truly embracing the transition to electric vehicles. This strategy of the company will be the deciding factor in whether it can compete with the wave of EVs in the future.

Although Toyota’s new engine has created a lot of expectations, with the strong development of electric vehicle technology today, whether hydrogen can take over the auto industry is still a big question mark. The auto industry is still closely monitoring the next developments.

In a surprising announcement on April 19, 2025, Toyota’s CEO sent shockwaves through the auto industry by unveiling the company’s latest innovation: a hydrogen-powered internal combustion engine that could redefine the future of clean transportation. According to Toyota, the technology offers the performance and feel of traditional gasoline engines, while emitting nothing but water vapor. If successful, this innovation may shift the trajectory of the current electric vehicle (EV)-dominated market.

Rather than relying on lithium-ion batteries like most modern EVs, Toyota’s new engine burns hydrogen, effectively transforming the internal combustion engine into a zero-emissions system. Unlike fuel cell electric vehicles, which generate electricity from hydrogen, this new approach keeps the mechanical nature of combustion engines, delivering a familiar driving experience without the harmful emissions.

Toyota believes this could be a game-changer, especially in regions with limited EV charging infrastructure. Hydrogen refueling, which takes mere minutes, offers a clear advantage over EV charging times, particularly for long-distance travelers and commercial vehicle fleets. Additionally, hydrogen can be produced using renewable energy sources such as wind and solar, giving it a potential sustainability edge in the long run.

From Toyota’s perspective, this is more than a technological innovation—it’s a strategic pivot. For years, the Japanese auto giant has faced criticism for being slow to fully embrace battery-electric vehicles. This latest move signals a different vision for decarbonizing transportation—one that doesn’t rely entirely on batteries, which come with their own environmental and geopolitical concerns.

Despite the buzz around Toyota’s announcement, not everyone in the industry is convinced. Experts point out that hydrogen technology, particularly for internal combustion applications, remains unproven at scale. Hydrogen infrastructure is sparse, especially outside of select regions like Japan, South Korea, and parts of Europe. Building a reliable network of refueling stations would require significant investment and regulatory support.

Moreover, critics highlight the environmental challenges of hydrogen production. While hydrogen can be made cleanly through electrolysis using renewable electricity, the majority of hydrogen today is still produced via steam methane reforming—a method that emits considerable carbon dioxide. Until green hydrogen becomes cost-competitive and more widely available, some experts argue that hydrogen-powered vehicles could struggle to meet sustainability goals.

The auto industry is also heavily invested in battery-electric vehicles, which are seeing rapid technological improvements. EVs are becoming more affordable, offering longer range, and charging infrastructure is expanding across the globe. Major players like Tesla, Ford, Volkswagen, and BYD have committed billions of dollars toward EV development and manufacturing, making it difficult for any alternative technology to gain momentum without a compelling edge.

Toyota’s gamble on hydrogen combustion could be interpreted as a bid to hold onto internal combustion technology—a domain where it has decades of experience and market leadership. Instead of fully transitioning to battery-electric platforms, Toyota seems to be charting a middle path that leverages its existing manufacturing capabilities while exploring cleaner fuels.

This strategy may appeal to customers who are hesitant about switching to EVs or live in areas where charging remains inconvenient. It could also resonate with driving enthusiasts who prefer the sound and responsiveness of a combustion engine, which battery EVs generally lack. If Toyota’s hydrogen engine can deliver a spirited driving experience with zero tailpipe emissions, it might carve out a unique niche in the future automotive landscape.

That said, the road ahead is uncertain. Developing, scaling, and distributing hydrogen combustion vehicles requires more than engineering success—it demands regulatory backing, infrastructure investment, and public acceptance. It also relies on hydrogen becoming a cleaner, more accessible fuel. Otherwise, the technology may struggle to compete with the growing momentum of battery-electric transportation.

Toyota is no stranger to skepticism. When the company first launched the Prius hybrid in the late 1990s, critics doubted its market viability. Today, hybrids are a mainstay of global car markets. The company’s approach to hydrogen could follow a similar arc—starting as a curiosity, then gradually gaining traction if the timing and infrastructure align.

Already, Toyota has demonstrated prototypes of its hydrogen-powered Corolla, which has been raced in motorsport events in Japan to test durability and performance. The company has also made significant investments in hydrogen fuel cell technology and is one of the few automakers with a production hydrogen vehicle—the Mirai—already on the market.

What remains to be seen is whether internal combustion engines powered by hydrogen can compete not only with battery EVs, but also with hydrogen fuel cell vehicles, which are generally seen as more efficient. Some engineers argue that hydrogen combustion sacrifices too much energy in heat and friction, making it less efficient than alternatives.

Nevertheless, Toyota’s move is reinvigorating the conversation around hydrogen. As countries aim for carbon neutrality and stricter emissions targets, the need for diverse, flexible transportation solutions is becoming more apparent. While battery-electric vehicles are currently leading the charge, alternative approaches like hydrogen combustion may have a role to play—especially in commercial, heavy-duty, or rural applications.

For now, Toyota’s vision is one of technological pluralism: a future where hybrid, electric, fuel cell, and hydrogen combustion vehicles coexist to meet varied consumer and environmental needs. This approach allows Toyota to hedge its bets while continuing to innovate in multiple directions.

The next few years will be crucial in determining whether hydrogen combustion can move beyond a headline-grabbing concept and into viable commercial production. Much will depend on policy decisions, infrastructure development, and consumer reception. But one thing is certain—Toyota has once again thrown down a bold challenge to conventional thinking in the auto industry.

Whether this path leads to a hydrogen-powered future or remains a detour in the electrification race, the global automotive community will be watching closely.