Toyota, the world's largest automaker by volume, has recently unveiled a new compact engine compatible to run on carbon-neutral fuels.

As most carmakers double down on electric cars, Toyota is working to meet tougher emissions standards and adopt a multi-faceted approach to carbon neutrality with new adaptable compact engines.

Toyota, Subaru, and Mazda Start Development of New Engines

At a recent media event, Toyota, along with partners Subaru and Mazda, showcased these next-generation engines. The event spotlighted the collaborative efforts of the three companies in developing 1.5-liter and 2.0-liter engines.

In a joint statement, Toyota stated that the more compact engines will allow for lower hood heights compared to existing models, improving aerodynamics and design flexibility. The smaller engine packaging is also expected to contribute to better fuel efficiency.

Toyota's new 1.5-litre engine, for instance, will achieve a 10% reduction in both volume and weight compared to its current 1.5-litre engines used in models like the Yaris. Similarly, the 2.0-litre turbo engine will offer comparable improvements over the existing 2.4-litre turbo engines found in larger vehicles, such as three-row SUVs.

These engines are designed to be compatible with a variety of carbon-neutral fuels, including e-fuels, biofuels, and even liquid hydrogen. Reuters tells us that this compatibility is a crucial aspect of Toyota's strategy to decarbonize internal combustion engines and comply with increasingly strict emissions regulations, particularly in markets like the European Union. By 2030, the EU aims to implement "Euro 7" emissions standards, with a complete ban on new CO2-emitting cars set for 2035.

Toyota's Chief Technology Officer, Hiroki Nakajima, stressed the company's commitment to reducing the environmental impact of its vehicles. However, he did not specify when these new engines would be available in production models.

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Toyota's Approach to Carbon Neutrality

The move to develop these new engines is part of Toyota's broader "multi-pathway" approach to carbon neutrality. Despite the growing prominence of electric vehicles (EVs), Toyota has continued to invest in a range of powertrains.

"To provide our customers with diverse options to achieve carbon neutrality, we must evolve engines that are in tune with the future energy environment," Koji Sato, President and CEO of Toyota said in a statement.

In the first quarter of the year, Toyota sold approximately 2.4 million vehicles, with nearly 40% being petrol-electric hybrids. According to a previous Reuters report, Toyota sold only 104,000 battery EVs in 2023, accounting for less than 1% of total sales, including those from its luxury Lexus brand.

Toyota's strategy is driven by a belief that the global auto market will remain diverse in its energy needs. Chairman Akio Toyoda has previously stated that EVs might only capture a maximum of 30% of the global market, with hybrids, hydrogen fuel-cell vehicles, and fuel-burning vehicles making up the remainder.

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