(May 28, 2024) Subaru, Toyota, and Mazda have each committed to developing new engines tailored to electrification and the pursuit of carbon neutrality. With these engines, each of the three companies will aim to optimize integration with motors, batteries, and other electric drive units. While transforming vehicle packaging with more compact engines, these efforts will also decarbonize ICEs by making them compatible with various carbon-neutral (CN) fuels.

Toyota showcased next-generation engines on Tuesday that can be used in cars as varied as hybrids and those running on biofuel, as it targets tougher emissions standards and doubles down on its strategy of selling more than just EVs.

At a media event with Subaru and Mazda, Toyota displayed in-development 1.5 liter and 2.0 liter engines with significantly reduced volume and height versus current engines.

"With these engines, each of the three companies will aim to optimize integration with motors, batteries, and other electric drive units," they said in a joint statement. Toyota owns about a fifth of Subaru and roughly 5% of Mazda.

The three said their efforts will help decarbonize internal combustion engines by making them compatible with alternative fuel sources such as e-fuels and biofuels. They also hope more compact engines will revamp vehicle design by allowing for lower hoods.

Toyota was widely considered an EV laggard but a slowdown in EV growth has seen it benefit from an uptake of gas-electric hybrids. The Japanese automaker said its new 1.5 liter engine will achieve volume and weight reduction of 10% of versus its existing 1.5 liter engines, which it uses in cars such as its Yaris compact.

The new 2.0-liter turbo engine will have similar gains versus existing 2.4 liter turbo engines used in bigger models such as three-row seating sport utility vehicles.

Subaru, Toyota, and Mazda have always been driven by a deep understanding of their customers’ diverse lifestyles. This understanding has led the three companies to develop signature engines that not only represent their respective brands but also cater to their customers' unique needs and preferences.


In pursuing decarbonization, all three companies have focused on carbon as the enemy and sought to expand options by acting with passion and purpose. This mindset has driven efforts to ensure a future for the supply chains and jobs that underpin engines. Under the extreme conditions of racing, the companies have worked to broaden powertrain and fuel options by competing with vehicles running on liquid hydrogen and CN fuels.