The new Honda Clarity Fuel Cell's drive train technology is about one-tenth the cost of Honda's previous FCV the FCX Clarity. The fuel-cell technology is also smaller than in the previous vehicle. Pricing for the vehicle was not released.
"The fuel cell stack for this model was downsized by 33% compared to the previous version of the fuel cell stack and yet an output of more than 100 [kilowatts or kW]," Honda said in a statement.
The new smaller fuel cell stack is about a 60% power output improvement over the previous model, Honda added.
The new Clarity four-door sedan will have a maximum output of 130kW of power for fast pickup and offers "excellent quietness at the same time."
The car was announced Wednesday at the Tokyo Motor Show.
The car carries a 70MPa high-pressure hydrogen storage tank providing a cruising range of more than 700 kilometers -- the top-class cruising range among all FCV (70 MPa is the equivalent of 10,153 pounds per square inch of pressure).
The fuel cell power train was also made as compact as a typical V6 engine. The smaller engine means more room for passengers and their cargo. The technology can also be fitted into a variety of other Honda vehicles.
"This power train layout enabled a full cabin package that seats five adults comfortably," Honda stated.
Honda, Toyota and Nissan all announced earlier this year that they would increase efforts to produce more hydrogen FCVs and said they will work together to build more fueling stations to support them.
The three Japanese automakers agreed on key details regarding a new joint support project for the development of hydrogen fueling station infrastructure in Japan. The companies pledged up to $90,000 per station to cover construction and operating costs.
Honda initially announced its hydrogen FCV at the North American Auto Show early this year.
The Honda Clarity Fuel Cell sedan is expected to go on sale in Japan in March 2016.
Honda said it will focus on sales mainly to local government bodies or business customers with which Honda has already been working to make FCVs more popular.
"During this period, Honda will collect information about the market use situation, including the external power feeding device, and gather diverse opinions from customers and other relevant organizations, then later begin sales to individual customers," Honda stated.
FCVs use compressed hydrogen gas, that when combined with oxygen and drawn through an electrolyte, creates electricity. The electricity is used to power an electric motor. The only exhaust is water vapor.