Hydrogen cars are becoming obsolete – the federal government and Bavaria are betting on a dead horse with subsidies

The decision by the federal government and Bavaria to invest €273 million in BMW’s fuel cell project reveals a striking discrepancy between ambition and reality. Despite tight public budgets, money is flowing into a concept that is increasingly appearing obsolete. The political claim of technological neutrality seems like an attempt to mask doubts, while the ongoing withdrawal of major manufacturers clearly indicates the direction the market is heading. At the same time, the state of the hydrogen-powered car infrastructure exposes deeper structural problems, and the technical components themselves are overshadowed by a system that has long since become a relic.


Technological openness in the shadow of a dying breed

The oft-cited concept of technological openness, upon closer inspection, appears to be a rhetorical shield for a concept whose market prospects are dwindling. While battery-electric models are growing in almost all regions, hydrogen propulsion is visibly losing ground.

Hydrogen cars are becoming obsolete – BMW receives €273 million in subsidies – other manufacturers have long since abandoned this technology.
Hydrogen cars are becoming obsolete – BMW receives €273 million in subsidies – other manufacturers have long since abandoned this technology.

While politicians and industry emphasize freedom of choice regarding drive systems, actual sales figures show how clearly consumers are positioning themselves. This creates the impression that hydrogen cars are increasingly becoming obsolete, while other solutions are gaining momentum. The trend is thus shifting towards a competing alternative model that is seen as having significantly more future potential.

Exit by established manufacturers – a clear signal

The consistent withdrawal of major automakers from hydrogen-powered cars marks a turning point. Mercedes and Honda halted their fuel cell programs because demand remained minimal and costs were high. This withdrawal illustrates how isolated BMW’s remaining commitment appears. The industry is clearly orienting itself towards battery-electric architectures, which appear more economically viable on a global scale. As a result, hydrogen cars are slipping further into the role of an obsolete model, existing only in niche projects like a technological oddity.

Infrastructure reduction instead of growth: Components lose importance

The infrastructure for hydrogen vehicles is also under pressure. Operators are closing hydrogen filling station locations because customers are scarce. The declining utilization makes continued operation economically unsustainable. Every closure further diminishes their appeal, as users demand range and a reliable supply. At the same time, crucial technical components are falling behind because their production remains largely cost-effective without scaling. This creates a vicious cycle that increasingly pushes the entire concept toward obsolescence, while battery-electric charging infrastructure expands rapidly, forming a significantly more stable system. In reality, hydrogen passenger car technology is thus becoming a niche product that few are pursuing.


Funding Policy and Market Reality – A Risky Combination

The current funding policies of the federal government and Bavaria stand in stark contrast to market developments. The decision to channel scarce resources into a technology that is becoming obsolete raises doubts about the strategic direction. While the funding is intended to safeguard innovation, the market has long favored solutions that combine scalability and efficiency. In comparison, the hydrogen car appears more like a leftover model being kept alive by political means, while battery technology is becoming the global standard. The industry’s development direction indicates that the risk of misallocation of resources is increasing considerably.

Conclusion: Subsidies Instead of a Market-Oriented Solution

Ultimately, a clear picture emerges: The hydrogen car has little chance in the mass market. Manufacturer hesitancy, infrastructure dismantling, and high costs argue against widespread adoption. The decision to generously support BMW nonetheless may bring the project attention, but it doesn’t create a genuine market. Ultimately, the federal government and Bavaria are investing in a technology that may be technologically fascinating, but whose economic viability is solely based on subsidies. This course threatens to become an example of how political symbolism and technological reality diverge – and how scarce budget funds are poured into a relic with little future. (KOB)

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