Toyota Mirai price cut by 60 per cent as hydrogen demand dies

The Toyota Mirai sedan has received a huge price cut in the US, as sales of hydrogen vehicles slow to a crawl.

Underwhelming sales of hydrogen-powered vehicles in the USA has led Toyota to hand down an eye-watering price cut to its Mirai sedan, making it less expensive than the popular Camry Hybrid.

As reported by US publication Cars Direct, Toyota dealers in California – the only state where the Mirai is sold – are now offering a rebate worth up to US$40,000 (A$61,600) for 2023 model year examples of the hydrogen fuel-cell (FCEV) sedan.

The flagship Toyota Mirai Limited has a list price of US$67,095 (A$103,300), meaning the new price could drop as low as US$27,095 (A$41,700) – or 60 per cent less than its normal cost.

By contrast, the hybrid version of the Toyota Camry – the best-selling non-SUV or pickup in the US – starts from US$28,855 (A$44,400) before on-road costs, and will soon be upgraded for a new generation model.

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Interestingly, Toyota’s base Mirai XLE – which starts from US$50,455 (A$77,700) – is only offered with a US$22,000 (A$33,900) discount, making the less luxurious version more expensive than its flagship counterpart.

There is a catch to the sizable discounts though, which are only available to customers who lease the Mirai through Toyota Financial Services – not those who buy the hydrogen-powered sedan outright.

Cash buyers of the Mirai are given US$15,000 (A$23,000) or six years worth of fuel (whichever comes first), while those who purchase the car on finance are limited to a three-year supply with the same financial value.

The Toyota Mirai’s significant price cut comes amid falling demand for hydrogen vehicles, which failed to take off in the US since beginning in the late 2000s.

Earlier this month, energy giant Shell announced it was closing all seven of its hydrogen refuelling stations in California, reducing the state’s count to less than 50 pumps.

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Last year, just 2968 new FCEVs were sold in the US, all of which were in California. The Toyota Mirai took 2737 sales, while the Hyundai Nexo contributed just 241 sales to the total.

More battery-electric vehicles are sold across the US every day, with 1.2 million EVs sold last year.

While Honda launched a hydrogen fuel-cell version of its popular CR-V SUV earlier this week, its US distribution will also be limited to California.

In Australia, just four Mirais and four Nexos were sold last year, though neither vehicle is available to the public – instead they are available on lease deals to organisations approved by the manufacturers. There are less than 10 refuelling stations across the country.