In Depth: China’s State-Backed Hydrogen Vehicle Industry Struggles to Find Its Feet

The announcement this week that global auto giants Toyota Motor Corp. and Hyundai Motor Co. will start selling hydrogen fuel-cell passenger cars in China later this year has jolted the fledgling sector.

Though both emphasized that the sales would be small-scale at first — Toyota’s local partner will start with 50 cars — it could mark a turning point for the local hydrogen vehicle market, which has so far mostly involved commercial trucks, public buses and tractors.