Honda Unveils New Fuel Cell Concept Vehicle, Shares Rise

Honda Motor Co., Ltd.’s (HMC) shares gained 0.44% on Nov 18, a day after the automaker unveiled the Honda FCV CONCEPT and the Honda Power Exporter CONCEPT.

As the name suggests, the Honda FCV CONCEPT is a concept car for a new fuel-cell vehicle (“FCV”) that will succeed Honda’s previous FCV, the FCX Clarity. Meanwhile, the Honda Power Exporter CONCEPT is a concept model for an external power feeding device that enables AC power output from the FCV with maximum output of 9 kW.

The FCV to be developed, based on the Honda FCV CONCEPT, will be a five-seat sedan. It is expected to be sold in Japan from Mar 2016, after which it will also be introduced in the U.S. and European markets.

The Honda FCV CONCEPT aims to improve the performance and reduce the cost of the FCX Clarity. The new fuel-cell stack used in the concept vehicle is two-thirds the size of the previous fuel-cell stack. However, it provides 60% better performance, according to Honda.

The concept vehicle uses a 70 MPa high-pressure hydrogen storage tank that provides a cruising range of over 700 km. It also has an external power feeding function. This means that when the vehicle is connected to an external power feeding device, such as the Honda Power Exporter CONCEPT, it will act as a small-sized mobile power plant, capable of generating electricity.

Honda believes that FCVs cause the least environmental damage compared to other vehicle types. Thus, the company has been trying to develop them since the late 1980s. The automaker will also endorse the use of the Smart Hydrogen Station (“SHS”), a packaged hydrogen station unit that uses Honda’s original high-differential-pressure electrolyzer.

Recently, Toyota Motor Corp. (TM) also unveiled a new fuel-cell vehicle, Toyota Mirai, which will be sold in Japan from Dec 15, 2014. In addition, the automaker will be launching the fuel-cell vehicle in the U.S. and Europe by mid-2015.

Honda currently carries a Zacks Rank #4 (Sell). Investors interested in the auto industry could consider stocks like Gentex Corp. (GNTX) and STRATTEC Security Corp. (STRT), both sporting a Zacks Rank #1 (Strong Buy).

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