Toyota Motor Company broke ground with the introduction of the electric-gasoline hybrid Prius. Today, Toyota is rolling out the Mirai, a zero-emission hydrogen fuel cell car for the general automotive market. Art Wheaton, automotive industry expert and senior lecturer at Cornell University’s ILR School, says in order to survive, the Toyota Mirai needs government subsidies – as the Prius initially did – and available hydrogen fuel.

Wheaton says:

“Toyota plans on selling its new hydrogen fuel cell car, the Mirai, next month in Japan and expand to major markets in 2015. The new fuel-cell vehicle will attempt to replicate the success of the Prius.

“It is important to understand that both the Prius and the new Mirai depend heavily on government subsidies. The Prius received favorable tax subsidies and other significant benefits to boost sales.

“The Prius success in the U.S. found mass acceptance thanks to subsidies and California policies allowing the Prius to drive in the HOV car-pool lanes to avoid traffic jams. The new Mirai will get more than $17,300 in subsidies in Japan and $12,500 in the U.S. There are several cars available brand new for less than the subsidy paid by the government.

“Fuel cell vehicles are seen as the long term future for the auto industry but cost of development is prohibitively expensive and seen as only surviving the short term with subsidies.”