ROME (Reuters) - Carmaker Stellantis said on Wednesday it would discontinue its hydrogen fuel cell technology programme and no longer launch a range of hydrogen-powered vehicles this year, as it sees no development of the market in the mid-term.

The group said the decision was due to the limited availability of hydrogen refuelling infrastructure, high capital requirements and the need for stronger purchase incentives for customers.

"The hydrogen market remains a niche segment, with no prospects of mid-term economic sustainability," Jean-Philippe Imparato, chief operating officer for enlarged Europe, said in a statement.

Imparato said the automaker had to "make clear and responsible choices to ensure our competitiveness and meet the expectations of our customers with our electric and hybrid passenger and light commercial vehicles offensive".

The group said it did not anticipate the adoption of hydrogen cell vans before the end of the decade.

Serial production of Stellantis' ( STLA ) new Pro One range was scheduled to start in the summer in Hordain, in France, and Gliwice, in Poland.

The decision will not impact staffing at Stellantis ( STLA ) production sites, the group said. It said all research and development activities focused on the hydrogen technology would be redirected to other projects.