Everything we know about Toyota’s new combustion engines

The electric vehicle (EV) market in the U.S. is in crisis, with buyers turning away from market leaders like Tesla due to a lack of innovation and newer alternatives. Meanwhile, traditional automakers like Ford are putting the brakes on their previously aggressive EV expansion plans. Amid concerns about lower-than-expected pure-electric vehicle sales, Toyota is taking a safer tack and focusing on more traditional internal combustion engine vehicles and hybrid options.

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Toyota has a long history of pioneering sustainable innovation in the automotive field. The Prius, the poster child for eco-friendly transportation, was first introduced as a concept in 1993, when it was billed as the “car of the 21st century.” Later that same decade, a production model of the Prius was launched as the world’s first hybrid vehicle. Currently, the company’s hybrid lineup extends beyond the Prius and now includes nearly all of the company’s vehicles, including more than a dozen models such as the Corolla, Camry, Land Cruiser, Sequoia, and even powerful models like the Tacoma and Tundra.

Despite its heritage, Toyota was hesitant to fully embrace electric vehicles (EVs) until recently, having only one pure EV in its portfolio – the bZ4X. Although the company is introducing a whole new range of BEVs, it seems to be sticking to that approach at least in part, recently announcing its plans to continue making internal combustion engines (ICEs) with three prominent upcoming models. Before we get into those, here’s why Toyota is so into hybrids.

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Although Toyota has fallen behind its global competitors in the transition to fully electric vehicles, there are a few reasons behind this decision. First, the company believes that the mass adoption of hybrid vehicles can significantly reduce emissions. The iconic Japanese automaker believes that having large numbers of hybrid vehicles on the road has a greater overall positive impact on the environment than the small-scale adoption of electric vehicles. Internal company documents shed light on its 1:6:90 rule, which states that the same amount of raw materials used to make one fully electric vehicle can be used to make six plug-in hybrids, or up to 90 hybrid cars. Aside from the lower raw material requirements, Toyota estimates that these 90 hybrid cars together offset 37 times as many CO2 emissions as a single electric vehicle.

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Studies back up this argument to some extent, showing that a mid-size hybrid has a smaller carbon footprint than a compact electric vehicle over 240,000 kilometers of driving, due to the energy-intensive manufacturing process of the battery. Despite the criticism, Toyota and its sister companies Mazda and Subaru remain committed to internal combustion engines. They have pledged to continue investing and collaborating on fuel-based technologies. This would also benefit hundreds of suppliers struggling with the transition to electric vehicles. Faced with the challenges of inadequate charging infrastructure and the high cost of electric vehicles, Toyota is banking on increasing demand for fuel-efficient internal combustion engines, especially hybrids.

Toyota’s big leap with its new hybrid engines is notable. Its latest internal combustion engines are more compact and deliver roughly the same power as conventional internal combustion engines. Of the three new engines announced by Toyota and its sister companies, the 1.5-liter naturally aspirated gasoline engine is about 10% smaller in volume compared to the current generation of engines with similar displacement. Likewise, another 1.5-liter turbo engine is 20% smaller than the existing 2.5-liter naturally aspirated variant. Finally, a 2.0-liter turbo version is 10% smaller than a 2.4-liter turbo unit. Both turbo variants also offer 30% greater efficiency than their counterparts. In addition to their smaller size, these engines are also lighter.

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These improvements are achieved by implementing a shorter piston stroke. The shorter piston strokes result in lower torque, which is offset by the electric motor. This approach increases efficiency by reducing the maximum speed of these newer engines. Smaller piston strokes, resulting in compact engines, can allow for lowered front hoods. This in turn would improve aerodynamics, lower the center of gravity, and minimize cabin vibration. Toyota is expected to begin production of these engines in 2026, before the EU’s Euro 7 emissions standard comes into force, in preparation for the ban on the production of emissions engines by 2035.

In collaboration with Idemitsu Kosan, ENEOS and Mitsubishi Heavy Industries, Toyota is working to build a carbon-neutral fuel supply chain. The company’s commitment to sustainability goes beyond reducing carbon emissions as it focuses on creating a circular economy for its vehicles, relying on material reuse and recycling to minimize waste at every stage of the vehicle lifecycle.

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Although Toyota’s strong stance on hybrids was initially criticized, particularly due to strong electric vehicle sales between 2020 and 2021, other automakers are revising their forecasts in the face of declining sales. Hyundai, for example, saw its electric vehicle sales fall by 5% despite achieving record-breaking total sales in the first quarter of 2024. Meanwhile, Tesla quietly lowered its sales targets while traditional automakers including Ford scaled back their new model efforts. These are in line with the challenges for the industry predicted by Toyota Chairman and former CEO Akio Toyoda, who previously said electric vehicles would reach a saturation point at around 30% of global market share.

Meanwhile, Toyota is sticking to its plans to launch up to 10 new all-electric vehicles in the U.S. by 2026, but said significant changes to assembly will be needed to make the process smoother.

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