The architect of China¡¯s world-leading electric-car push is convinced hydrogen vehicles will play an important role in the world¡¯s biggest auto market.

Fuel-cell vehicles will be key especially in China¡¯s northwest, where distances between cities are long and electric-car adoption remains low, Wan Gang said Wednesday in Munich.

¡°First we need to build a green hydrogen system,¡± Wan said at a German-Chinese conference on the sidelines of the IAA car show. In some regions, plug-in hybrid and hydrogen cars could even be more prevalent than fully electric models, he said.

A former Audi executive who went on to become China¡¯s science-and-technology minister, Wan convinced leaders two decades ago to bet on vehicle electrification, selling it not only as a way to boost economic growth but also to tackle China¡¯s dependence on oil imports and pollution. His strategy ¡ª using government subsidies to bring carmakers and drivers on board ¡ª made China the dominant market for EVs.

Promoting hydrogen is ¡°very beneficial¡± as the fuel can also be used in maritime and rail transport, said Wan, a mechanical engineer trained in Germany. Especially China¡¯s commercial-vehicle fleet could benefit from hydrogen drivetrains, he added.

A BMW AG iX5 Hydrogen vehicle on the opening day of the Munich Motor Show (IAA) ion Tuesday. Europe's automakers are showing off their latest battery-powered vehicles at the car show this week as they try to challenge Tesla and fend off growing competition from China.
A BMW AG iX5 Hydrogen vehicle on the opening day of the Munich Motor Show (IAA) ion Tuesday. Europe¡¯s automakers are showing off their latest battery-powered vehicles at the car show this week as they try to challenge Tesla and fend off growing competition from China. | Bloomberg

The comments are poised to please Germany¡¯s main backer of the technology. BMW has built dozens of hydrogen test vehicles in the past years and is open to putting the drivetrain also in its ¡°Neue Klasse¡± vehicles due around mid-decade, Chief Executive Officer Oliver Zipse said at the same event. The company this weekend unveiled the first prototype for its next-generation EVs at the IAA.

¡°For us talking about zero-emission vehicles always means talking about hydrogen as well,¡± Zipse said, adding that China should add more refueling stations near urban centers to bolster the technology¡¯s relevance for private customers.

Hydrogen vehicles are struggling to take off because of high costs and a fledgling fueling infrastructure.

Mercedes-Benz Group has phased out the hydrogen-powered variant of its GLC SUV it built in small batches. While Honda stopped production of its Clarity hydrogen model in 2021, it has announced plans to start production of a fuel-cell vehicle in the U.S. in 2024.

BMW operates a test fleet of 80 hydrogen-powered iX5 sport utility vehicles and is shipping them to several countries for test drives. The company will decide on potential serial production in the second half of this decade.