The issues surrounding the application of fuel cells for road transportation are evaluated. The advantages and disadvantages of the candidate fuel-cell systems and the various fuels are discussed, together with the issue of whether the fuel should be converted directly in the fuel cell or should be first converted to hydrogen on-board the vehicle. Developments in competing vehicles technologies, namely, internal-combustion-engined vehicles (ICEVs), pure-battery vehicles (EVs) and ICE–battery hybrid vehicles (HEVs) are reviewed. Finally, the impact of the introduction of fuel-cell vehicles (FCVs) on industry, and in particular on the oil and automotive industries, is examined. For FCVs to compete successfully with conventional ICEVs, it is concluded that direct-conversion fuel cells — using probably hydrogen, but possibly methanol — are the only realistic contenders for road transportation applications.