Honda's Fuel Cell Car Strategy: Leasing Vs. Selling

Honda has more than two decades of market experience with hydrogen fuel cell vehicles, starting from the introduction of the Honda FCX in December 2002, the world's first zero-emission fuel cell electric vehicle (FCEV) to receive certification for everyday use from both the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB). The 2025 CR-V e:FCEV is a fuel-cell vehicle that can be leased and is the only fuel-cell electric passenger vehicle made in America. The lease options include up to a $30,000 credit to help offset the costs of hydrogen refilling. The fuel cell version of the CR-V, dubbed the “e:FCEV”, will be offered for lease only to customers in California starting July 9.

Limited hydrogen infrastructure

The 2025 Honda CR-V e:FCEV is a fuel-cell vehicle that can be leased. It is powered by a hydrogen fuel cell and is similar to an electric vehicle in that it uses hydrogen stored in on-board tanks to generate electricity to power its motor. The e:FCEV is the first to use the second-generation Honda fuel cell module, which was co-developed with General Motors and offers improved durability, better efficiency and refinement.

The CR-V e:FCEV is only available via lease in California because hydrogen infrastructure is extremely limited. This means that there is a lack of a developed refueling network, which is necessary for the wider consumer adoption of fuel-cell vehicles.

Honda has national ambitions for the CR-V e:FCEV, as well as for fuel cells and hydrogen in general. The company is working towards establishing fuel cells in three other areas: stationary power stations, commercial vehicles, and passenger vehicles.

The CR-V e:FCEV is built at Honda's Performance Manufacturing Center in Marysville, Ohio, and is the only fuel-cell electric passenger vehicle made in America. The fuel cell is co-developed with GM and is manufactured by Fuel Cell System Manufacturing in Brownstown, Mich.

Honda has more than two decades of market experience with hydrogen fuel cell vehicles, starting from the introduction of the Honda FCX in December 2002, the world's first zero-emission fuel cell electric vehicle (FCEV) to receive certification for everyday use from both the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB).

High lease prices

Honda's 2025 CR-V e:FCEV is a fuel-cell vehicle that can be leased. The CR-V e:FCEV is powered by a hydrogen fuel cell and is only available via lease in California.

The lease options include up to a $30,000 credit to help offset the costs of hydrogen refilling. The fuel cell version of the CR-V, dubbed the “e:FCEV”, will be offered for lease only to customers in California starting July 9.

Honda has national ambitions not only for the CR-V e:FCEV, but for fuel cells and hydrogen in general. The company is working toward establishing fuel cells in three other areas: stationary power stations, commercial vehicles, and other passenger vehicles.

The CR-V e:FCEV is the only fuel-cell electric passenger vehicle made in America. The fuel cell, co-developed with GM, is manufactured by Fuel Cell System Manufacturing in Brownstown, Mich.

Honda says the cooperation with GM allowed it to reduce the cost of the fuel cell in the CR-V e:FCEV by two-thirds compared to the unit in the Clarity.

The high lease prices of the CR-V e:FCEV are due to the limited hydrogen infrastructure and the high cost of hydrogen refilling. The high cost of hydrogen refilling is a significant disincentive for potential buyers and is a major obstacle to the widespread adoption of fuel-cell vehicles.

High costs of hydrogen refilling

Honda's 2025 CR-V e:FCEV is a fuel-cell vehicle that can be leased. The e:FCEV is powered by a hydrogen fuel cell, which is stored in on-board tanks and generates electricity to power its motor.

The high costs of hydrogen refilling are a major reason why Honda is leasing the e:FCEV rather than offering it for sale. The hydrogen infrastructure is extremely limited, and this is a major barrier to the adoption of fuel-cell vehicles.

Honda has national ambitions for the e:FCEV and fuel cells and hydrogen in general. The company is working towards establishing fuel cells in three other areas: stationary power stations, commercial vehicles, and passenger vehicles.

The lease options for the e:FCEV include up to a $30,000 credit to help offset the costs of hydrogen refilling. This is a generous offer that aims to make the e:FCEV more affordable for customers.

The high costs of hydrogen refilling are a significant obstacle to the widespread adoption of fuel-cell vehicles. However, with the lease options and credits offered by Honda, the e:FCEV may be more accessible to customers who are interested in trying out this new technology.

Lack of consumer adoption

Honda's decision to lease its fuel cell car, the 2025 CR-V e:FCEV, can be attributed to several factors, including the limited hydrogen infrastructure and the high costs associated with hydrogen refilling. The e:FCEV is only available via lease in California, where hydrogen infrastructure is extremely limited. This lack of infrastructure makes it difficult for consumers to access hydrogen refueling stations, which is a significant barrier to the adoption of fuel cell vehicles.

The high costs associated with hydrogen refilling are another factor that may be discouraging consumer adoption. The lease options include up to a $30,000 credit to help offset the costs of hydrogen refilling, but this may still be a significant expense for potential buyers. The cost of hydrogen refilling is likely to be a major consideration for consumers, especially when compared to the lower costs associated with refueling traditional gasoline vehicles.

The limited availability of the e:FCEV may also be a factor in the lack of consumer adoption. The vehicle is only available for lease to customers in California, which may not be a large enough market to generate significant interest. The high costs and limited availability of the e:FCEV may be discouraging potential buyers from considering it as an option for their next vehicle.

The lack of a developed refueling network is another significant barrier to the adoption of fuel cell vehicles. Similar to electric vehicles, FCEVs require a well-developed refueling network to be widely adopted. However, the refueling network for hydrogen is currently limited, which is a significant obstacle for consumers considering fuel cell vehicles.

In conclusion, the lack of consumer adoption of Honda's fuel cell car can be attributed to several factors, including the limited hydrogen infrastructure, the high costs associated with hydrogen refilling, the limited availability of the e:FCEV, and the lack of a developed refueling network. These factors are likely to be significant considerations for consumers, and until they are addressed, the adoption of fuel cell vehicles is likely to remain limited.

High costs of fuel cell technology

Honda's leasing of its fuel cell car, the 2025 CR-V e:FCEV, is a strategic move influenced by the high costs associated with fuel cell technology. The CR-V e:FCEV, powered by a hydrogen fuel cell, is a fuel-cell electric vehicle (FCEV) that generates electricity to power its motor using hydrogen stored in on-board tanks.

The high cost of fuel cell technology is a significant barrier to its widespread adoption. Honda acknowledges that hydrogen infrastructure is extremely limited, which restricts the availability of refueling stations. This limitation directly impacts the practicality of fuel cell vehicles for the general public, as the lack of a well-developed refueling network makes it inconvenient for potential buyers.

To address this challenge, Honda has introduced lease options for the CR-V e:FCEV, making it accessible to customers in California starting July 9. The lease program includes a $30,000 credit to help offset the costs of hydrogen refilling, recognizing the additional expense associated with refueling fuel cell vehicles.

The high costs of fuel cell technology are multifaceted. Firstly, the production of fuel cell modules, which are the core components of these vehicles, is expensive. Honda's cooperation with General Motors has helped reduce the cost of the fuel cell in the CR-V e:FCEV by two-thirds compared to the unit in the Clarity. However, the overall cost of the vehicle remains high due to the specialized technology and materials required.

Secondly, the limited hydrogen infrastructure contributes to the high costs. The construction of hydrogen refueling stations is a significant investment, and their scarcity makes it challenging for fuel cell vehicle manufacturers to establish a robust distribution network. This lack of infrastructure not only hinders the adoption of fuel cell vehicles but also contributes to the higher overall costs for consumers.

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