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Toyota New Engine

Forget EV Hype: Toyota’s New Gas Engines Are Built to Power Everything – And They’re Here to Stay

Casey Reedby Casey Reed
08/16/2025 08:00

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While much of the auto industry is transitioning to an all-electric future, Toyota is committed to revolutionizing and modernizing the internal combustion engine (ICE). Toyota is working in partnership with Mazda and Subaru to develop a new generation of compact, lightweight gas engines designed to power a wide range of vehicles.

Toyota’s New Gas Engines

According to Hiroki Nakajima, Toyota’s Chief Technology Officer, the upcoming 1.5-liter and 2.0-liter engines will be a game-changing invention. Unlike traditional internal combustion engines (ICE), the new engines are being built for maximum adaptability. This means they will be able to operate in conventional gasoline and hybrid setups, as well as with biofuels, hydrogen fuel systems, and synthetic fuels.

Toyota’s engineers also aim to incorporate them into extended-range electric vehicles (EREVs), where the gas engine powers the battery instead of directly powering the wheels. This will allow the battery to last longer and run more efficiently. The approach is expected to improve fuel economy and reduce emissions.

Extended-Range Tech Already in the Works

Through its joint venture with GAC, a Chinese state-owned automobile manufacturer, Toyota has confirmed that EREV versions for the Chinese market are already in development. The models include the Highlander SUV and Sienna minivan, which will be propelled entirely by electric motors, while a small gasoline engine will charge the battery to extend range.

BMW, Mazda, Nissan, and other manufacturers are also developing models that employ the EREV concept. By adopting similar technology, Toyota has made clear that it views the approach as a crucial part of its long-term strategy.

Pushing Efficiency and Performance

In 2018, Toyota achieved 41% thermal efficiency in its hybrid engines. The company now aims to break that record by developing new power plants that run on multiple fuel types without sacrificing versatility.

The lineup will include both naturally aspirated and turbocharged 1.5-liter engines, as well as a 2.0-liter turbocharged unit. There will also be a performance version capable of producing up to 600 horsepower for race cars. This engine is slated for use in Gazoo Racing (GR) models such as the GR Corolla, GR Yaris, and GR Supra.

Additionally, Toyota is exploring long-range plug-in hybrids capable of traveling up to 62 miles on electric power alone before the gas engine is needed. Company executives believe this will be a practical and appealing option for customers.

Rethinking Vehicle Platforms

Andrea Carlucci, Toyota Europe’s Vice President of Product Strategy and Marketing, says the new “EV-native” platforms will prompt the company to rethink how vehicles are built. These platforms will have to accommodate hybrid or ICE powertrains without compromising driving dynamics and efficiency.

Although Tesla, Hyundai, and Volkswagen have already developed EV architectures, Toyota’s design aims to ensure that the same platforms remain flexible enough for other propulsion systems. This flexibility will allow Toyota to adapt quickly to market demands without fully abandoning gas engines.

Not Betting Everything on EVs

Toyota’s leadership has repeatedly argued that EVs will not dominate the global market anytime soon. Instead, the company believes that offering engines capable of working in everything from traditional hybrids to hydrogen-powered vehicles is the best way to meet diverse regional needs.

Conclusion

Toyota’s plan signals that gas power is not disappearing but evolving. By reimagining the internal combustion engine for a multi-fuel platform, the company is prioritizing flexibility over a one-size-fits-all approach. Toyota believes this strategy will help decarbonize transportation while still meeting the varied needs of global markets.

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