BMW will begin testing hydrogen fuel cell vehicles this month.

The German automaker's head of powertrain research, Matthias Klietz, said the company plans "a technically mature, customer ready vehicle some time after 2020. By around 2025 to 2030, we expect fuel cell cars to have an established presence but there are challenges that remain, like building the refuelling infrastructure."

BMW earlier this month unveiled a 5-Series Gran Turismo FCV prototype in Miramas, France, Bloomberg reported. The vehicle, which has a range of 500km (300 miles), uses technology jointly developed by BMW and powertrain partner Toyota.

BMW also unveiled a plug-in hybrid version of its 2-Series Active Tourer which will be launched in 2016.