BMW Group CEO Oliver Zipse is doubling down on his warning that Europe – and Germany in particular – is falling behind in the global race to industrialize hydrogen technologies. In his speech at the Automobilwoche congress in November, he emphasized this, according to his own statement Automotive Newsthat the biggest investments in next-generation powertrains are now being made in Asia and the United States, not Europe. In his view, hydrogen has evolved from a niche experiment into a strategic technology that other regions are scaling far more aggressively.
Zipse noted that while Europe has directed most of its regulatory and policy focus on battery-electric vehicles, countries such as China, Japan, Korea and the US (especially California) are developing long-term strategies that view hydrogen as a serious pillar of future mobility.
BMW remains one of the last hydrogen refusers in Europe
Among European automobile manufacturers, BMW stands out as almost the only one when it comes to the further development of passenger cars with hydrogen fuel cell drives. The company has decades of experience in the field, from hydrogen combustion experiments in the early 2000s to developing advanced fuel cell systems that function similarly to battery-electric vehicles, but with electricity generated on board.
Unlike combustion prototypes of past decades, today’s fuel cell architecture is based on electric motors and shares much of its hardware with BMW’s BEVs. The difference is how energy is stored and produced. This is where BMW sees the value: quick refueling, consistent performance in very cold or very hot climates and lighter onboard energy storage for long-distance journeys.
iX5 Hydrogen is scheduled to go into production in 2028
The clearest example of BMW’s continued commitment is the iX5 Hydrogen. After several years of global testing and a dedicated pilot fleet, BMW will bring the vehicle into series production in 2028. Volumes will remain relatively low, but this is the first time BMW will build a hydrogen-powered model as part of its regular manufacturing roadmap and not just as a technology showcase.
The fuel cell stack is produced in Germany, the hydrogen tanks store gas under very high pressure and a compact battery buffer ensures short bursts of power during strong acceleration. The entire system was designed to integrate into the existing X5 platform with minimal structural changes. This compatibility is an essential part of BMW’s belief that future platforms must remain flexible and not be tied to a single drive type.
Public funds help, but are not enough to catch up
BMW’s fuel cell development is supported by public funding from the federal government and the Free State of Bavaria amounting to 273 million euros as part of the EU hydrogen initiative IPCEI. The investment is intended to support the industrialization of a scalable fuel cell powertrain for passenger vehicles.
Despite this support, Zipse argued that Germany is not moving fast enough compared to regions that treat hydrogen as an industrial priority. He warned that if Europe continues to rely on a narrow interpretation of future mobility, it risks losing influence over an entire technology sector.
Skepticism remains high
Many analysts remain unconvinced that hydrogen has a meaningful future in passenger vehicles. Critics argue that fuel cell vehicles are still expensive to produce, lack infrastructure and are far behind BEVs in terms of maturity. Some also say the efficiency losses in hydrogen production and distribution make it difficult for the technology to compete on costs.
These views reflect the broader political environment in which BMW finds itself: Europe has largely embraced battery-electric mobility and expects BEVs to dominate new car sales from the mid-2030s.
Zipse rejects the EU’s regulatory direction
Zipse has become one of the strongest voices in the industry criticizing the EU regulatory framework “only from the tailpipe”. He argues that the current rules ignore the broader decarbonization work automakers are already doing, from sourcing low-carbon steel to renewable energy factories and cleaner supply chains. He believes regulations should consider a vehicle’s emissions throughout its life cycle, not just those that come out of the exhaust.
BMW argues that reliance on a single technology increases risk and reduces Europe’s industrial resilience. Zipse said the company’s flexible platform strategy, which allows BEVs, hybrids, internal combustion engines and hydrogen fuel cell models to be built on the same basic structure, is critical to serving global markets with different infrastructure realities and energy constraints.
Where BMW sees hydrogen as a role
Hydrogen fuel cell vehicles are not intended to replace BEVs, but BMW sees them as a practical alternative in certain scenarios. These include markets without reliable fast-charging networks, regions with limited power grid capacity, and use cases where range consistency and quick refueling are important, such as long-distance trips or heavy loads. BMW assumes that hydrogen could also be attractive to customers for whom a purely battery-electric lifestyle is not easily possible.
BMW’s hydrogen program is still available in small numbers, but the transition to series production of the iX5 Hydrogen marks a major shift for the company. Zipse said interest from international partners continues to grow and expects hydrogen to play a larger role in BMW’s portfolio later in the decade, provided Europe keeps pace on infrastructure, financing and regulatory flexibility.
His message was direct: If Europe decides not to develop hydrogen, other regions will be happy to take the lead.
