The Fuel Cell Sedan, first shown as a concept at the Tokyo Motor Show last year, will launch in Japan next April, priced at seven million yen (£40,000). Selected markets in Europe and North America will get the car during the summer, and prices have yet to be announced.

Hydrogen fuel cells, which use a reaction between hydrogen and oxygen to produce electricity used to drive an electric motor, emit only water vapour from the tailpipe. Hydrogen is abundant and renewable, refuelling takes minutes and the tank range is close to a petrol-powered car.

However, the infrastructure to support it is still nascent, and Toyota is working with other manufacturers developing fuel cell cars to select sites for hydrogen refuelling stations. Launch markets will reflect areas where the infrastructure roll-out is either underway or being planned, and the carmaker has said it sees the technology being as important as hybrids to its global plans.

Karl Schlicht, executive vice president of Toyota Motor Europe, said: ‘We are very excited by the arrival of fuel cell technology. Of course there are many challenges ahead, such as the availability of fuelling infrastructure and customer awareness. But our history with hybrid gives us all the experience we need to bring a new technology to the market.

‘In Europe we will be taking it step by step, gradually introducing the car in selected markets. But we are confident that hydrogen will become increasingly popular as a way of powering vehicles.’