Major European automotive manufacturer Stellantis has halted its development of hydrogen-powered light commercial vehicles and scrapped the launch of a planned new range of vans, claiming the hydrogen market has “no prospects of mid-term economic sustainability”.

The Amsterdam-based company—ranked the world’s  fourth-largest manufacturer by sales—cited  the limited availability of refuelling stations, high capital costs and the need for stronger consumer purchasing incentives as the main reasons for its decision to park its hydrogen ambitions.

“The hydrogen market remains a niche segment, with no prospects of mid-term economic sustainability” Imparato, Stellantis

The company said it does not anticipate the adoption of hydrogen-powered light commercial vehicles before the end of the decade and will instead focus its efforts on the battery-electric and hybrid vehicle markets

“In a context where the company is mobilising to respond to demanding CO₂ regulations in Europe, Stellantis has decided to discontinue its hydrogen fuel-cell technology development programme,” said  Jean-Philippe Imparato, COO for Enlarged Europe.

“The hydrogen market remains a niche segment, with no prospects of mid-term economic sustainability. We must make clear and responsible choices to ensure our competitiveness and meet the expectations of our customers with our electric and hybrid passenger and light commercial vehicles offensive.”

Stellantis said it will no longer launch its new range of hydrogen-powered Pro One vehicles this year. Serial production was scheduled to start this summer at Hordain in France and at Gliwice in Poland.

The company, which was formed in 2019 through the merger of Fiat Chrysler and PSA Group, said its hydrogen-related R&D efforts will be redirected to other projects, implying a stronger focus on developing its ranges of battery electric and hybrid models.

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Author: Stuart Penson