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Since 1992, Toyota Motor Corporation (TMC) has been working on the development of fuel cell system technology. TMC is designing principal components in-house, including fuel cell stacks, high-pressure hydrogen storage tank systems, and hybrid systems. TMC developed the ‘02 model TOYOTA FCHV, the world-first market-ready fuel cell vehicle, and started limited lease of the vehicles in December 2002. In June 2008, TMC developed a new TOYOTA FCHV-adv which obtained vehicle type certification in Japan, and is currently available for leasing in Japan and the United States. In the development of the TOYOTA FCHV-adv, TMC has improved the cruising range and cold start/drive capability from the previous TOYOTA FCHV. The TOYOTA FCHV-adv has achieved an actual cruising range of over 500 km, which is equivalent to that of current gasoline vehicles. In addition, the TOYOTA FCHV-adv has proven starting/driving capability at -30°C temperature.

Toyota Motor Corporation developed the Fuel Cell Hybrid Vehicle (FCHV). The FCHV-4 is an evolution of the conventional fuel cell vehicle that has made immense improvements in efficiency. Both a fuel cell and a secondary battery are used as sources of energy for the hybrid system. By using these energy sources proportionally, the system can be kept at or near its optimum state. The FCHV-4's system is designed to improve the efficiency and aims for high responsiveness when the vehicle is in a transitional state. In the same way as most electric vehicles, and as in the gasoline powered hybrid “Prius”, the energy the traction motor creates during breaking can be used to regenerate the secondary. The fuel cell and traction motor inverter are connected directly, with the secondary battery connected through the DC/DC converter to the fuel cell in parallel.