Toyota hopes to become the world's first car maker to launch a hydrogen-powered fuel-cell vehicle for commercial use.
A newspaper reports the company will market a car using the futuristic technology next year.
Japan's top car maker plans to start selling its environmentally friendly FCHV-4 in the Tokyo area by the summer of 2003, according to the Tokyo Shimbun newspaper.
Fuel cell cars run on energy produced in a chemical reaction combining hydrogen and oxygen, making them virtually pollution-free.
The world's leading car firms have been developing fuel cell vehicles, but a high price tag has kept such cars out of showrooms.
Toyota's version will cost about 10 million yen (€85m), making the target customer large corporations and the government, Tokyo Shimbun said.
The launch will initially be limited to the Japanese capital because hydrogen refuelling stations for fuel-cell cars are already being set up there.
The top speed of the FCVH-4, which stands for "fuel cell hybrid vehicle," is 95 miles per hour. It has a cruising range of more than 155 miles.
The car is modeled after Toyota's Kluger V sports utility vehicle.