Toyota has announced plans for a new generation of internal combustion engines designed to operate with green fuels like hydrogen and bioethanol. This move aligns with Toyota’s strategy of integrating these engines with electric motors in hybrid vehicles, in a bid to maintain relevance amidst the global shift towards electric vehicles.

Toyota’s CEO, Koji Sato, stated that these new engines will be relevant in the era of battery electric vehicle (BEV) technology. During a presentation in Tokyo, Toyota, alongside Mazda and Subaru, revealed prototypes of these engines and their commitment to fuel-based technology. This initiative aims to support numerous suppliers currently affected by the shift towards electric vehicles.

Despite increasing popularity for BEVs led by companies like Tesla, Toyota emphasizes the demand for hybrid vehicles due to concerns about BEV costs and charging infrastructure. Production for these new engines is expected around the time new EU emission regulations are phased in at the end of 2026.

Toyota’s Chief Technology Officer, Hiroki Nakajima, noted that investment in these new engines is smaller compared to BEV development. These engines will be compact, allowing greater output when paired with batteries, and designed to run on petrol, diesel, and lower-emission fuels such as hydrogen.

Mazda and Subaru, who also presented at the event, are developing environmental-friendly engines to meet future emission standards. Mazda’s rotary engine and Subaru’s horizontally opposed engine were highlighted as essential components adaptable for the current era.

Toyota continues to work on BEVs but asserts that a sudden shift to BEVs is not feasible due to the economic and social impact, particularly on jobs within the vehicle production supply chain in Japan.