Japanese carmaker Honda has said it is to drastically cut the costs of its fuel cell vehicles in order to make them more competitive with normal cars.

The company intends to cut costs by 100 times over the next 15 years, in recognition of the current gap in manufacturing costs compared with typical gasoline models.

Yozo Kami, chief engineer in Honda's research and development operations, said he hoped that fuel cell cars would have a market share of five per cent by 2020 as a result of the move.

Last week Japan approved certification of both Honda and Toyota's fuel cell cars, marking a further step on the way towards mass production.

The Honda FCX can drive for 267 miles with a full tank, while the FCHV from Toyota can drive at speeds of up to 155 kilometres per hour.