A curious detail about some of the recent Thermophotovoltaics research at MIT -- it's financed by Toyota.
Such a light-based system would not replace the car's engine. Instead it would supply enough electricity to run subsystems, consuming far less fuel than is needed to keep a heavy, multi-cylinder engine running, even at low speed. Also, the TPV system would have no moving parts; no cams, no bearings, no spinning shafts, so no energy would be spent just to keep an engine turning over, even at idle.
The research is partly funded by Toyota, the same company that has experienced such strong success with its fuel-sipping hybrid electric Prius. New TPV systems might mesh nicely with hybrid automobile technology in which fuel is saved by shutting down the engine when the car is stopped, such as at traffic signals. In the future, conventional cars may operate the same way. Providing electricity and air conditioning with the engine off will be a necessity. However, according to MIT's press release on the research, Toyota has made no decision to develop this technology for automobiles.
http://renewableenergyaccess.com/rea/news/story?id=44985...that the article claims it won't be used as a prime mover is conjecture on their part -- TPV shows potential to be more efficient than an internal combustion engine -- whether it will be more efficient than a fuel cell, well the researchers cap theoretical efficiciency at 50%, but it wouldn't be the first time such an estimate was an assumption based on a seemingly insurmountable technical obstacle that suddenly becomes surmountable. My guess -- Toyota's got a lot of these little research feelers out and may decide to cut PEM fuel cells and Hydrogen ICE technologies off at the knees if they can find something that works better.
Certainly and without a doubt, they are at the very least looking into heat recovery as an efficiency enhancer for hybrids, with more and more of the prime moving done on the electrical end.