Toyota plans to sell its new generation of petrol engines and hybrid powertrains to other carmakers. The Japanese company expects this business to bring in about 1.5 billion euros annually by 2032, with the first deliveries starting as early as 2027. Toyota is targeting orders for about 500 million euros this year, and the plan is unusual for the automotive industry, in which manufacturers are increasingly updating existing engines rather than developing entirely new families due to the costs of electrification and stricter emissions regulations.
Toyota's new range includes a naturally aspirated 1.5-liter version, a turbocharged 1.5-liter engine and a 2.0-liter turbocharged four-cylinder unit. The company is developing them with more compact dimensions and the possibility of integration with electric motors and batteries. The smaller engine will be primarily intended for hybrid vehicles. The turbocharged version of the 1.5-liter unit should offer power comparable to that of a conventional 2.5-liter naturally aspirated engine. The larger 2.0-liter turbo engine is designed to provide more power than the current 2.4-liter turbocharged engine while improving fuel economy.
Toyota has not yet named specific buyers. However, the company has close ties with Daihatsu, Subaru and Mazda. Daihatsu is a wholly owned subsidiary of Toyota, while the Japanese manufacturer owns 21.5 percent of the voting rights in Subaru and 5.1 percent of Mazda's shares. Toyota already supplies hybrid technology to Mazda, and Subaru uses Toyota's electrical components in its hybrid systems. Suzuki has also used Toyota engines in its models.
This does not mean that partners will automatically choose the new units. Mazda is developing its own hybrid system and the Skyactiv-Z engine for the next generation of the CX-5. Subaru continues to work on its boxer engines, with engineers aiming for 50 percent thermal efficiency. Toyota, Mazda and Subaru announced a joint engine project in 2024, but each of the three companies is maintaining its own technical direction. Toyota is presenting its new engines not as an alternative to electrification, but as part of it. The compact units will be able to be installed in a variety of platforms, including those that support more than one type of drive. The 2.0-liter turbo engine is expected to work both independently and in combination with an electric system.