The Japanese maker recently introduced the Mirai, its first retail fuel-cell vehicle, and though sales have so far been measured in the hundreds, the target is to reach 30,000 annually by 2020, and even higher in the years beyond.

A number of other automakers are experimenting with hydrogen power; Hyundai already offers a fuel-cell version of its Tucson SUV, and Honda will launch a retail model next year.

While most competitors are focusing on hybrids, with a heavy emphasis on battery-based models, Toyota remains skeptical about the long-term role of electric vehicle technology.

"When we first announced the Mirai, we said we were at the start of the age of hydrogen," Kiyotaka Ise, a senior managing officer for Toyota Motor Corp., told reporters in Tokyo. "The figure we've announced today is ambitious, but it needs to be to keep the ball rolling."