Toyota is working on an internal combustion engine (ICE) that promises to challenge the electric vehicle (EV) market in the coming decade.
This new engine boasts exceptional thermal efficiency and versatility, capable of running on petrol, synthetic fuels, biodiesel and hydrogen.
These advancements stem from Toyota’s proven racing pedigree, particularly with its hydrogen-powered GR Yaris and GR Corolla race cars.
Despite criticism for its seemingly rigid and disinterested stance on EVs, Toyota remains dedicated to ICE vehicles—for better or worse.
Motorsport heritage sparks next-gen engines

Toyota’s more recent innovative streak famously began with Akio Toyoda, the company's chairman and former CEO, championing the development of a hydrogen race car.
Unlike the Mirai, a hydrogen fuel-cell electric vehicle (FCEV), Toyota engineers focused on adapting a combustion engine to utilise hydrogen.
They selected the 1.6-litre three-cylinder engine from the GR Yaris, successfully deploying it in the Super Taikyu Series.
Balancing thermal efficiency was a significant challenge, given hydrogen burns faster and hotter than gasoline. However, insights from the hydrogen GR Yaris/GR Corolla experiment enabled Toyota to enhance engine efficiency for street applications.
As Chief Technology Officer Hiroki Nakajima explained to Auto News, “Hydrogen engine development has really contributed to our deeper understanding of engine heat efficiency. It was a trigger that brought this technology.”
Next-gen performance

Toyota’s engineers have made remarkable strides, creating engines that are 10 to 20 per cent smaller yet more fuel-efficient and powerful,
These power plants are designed to operate on multiple fuels, including hydrogen. The immediate goal is to integrate these efficient engines into hybrid drivetrains.
Among the new developments are a 1.5-litre unit offering turbocharged and naturally aspirated configurations and another 2.0-litre turbo variant.
The engines feature shorter strokes and reduced torque but are supplemented by electric motors in hybrid systems to compensate for any power deficits. This approach, while lowering revolutions per minute (rpm), enables a more seamless driving experience, at least in theory.
Hurdles ahead
As Euro 7 emissions regulations loom, requiring stricter control over petrol emissions, Toyota aims to debut these powertrain advancements to meet the new standards.
Long-term plans reportedly include developing engines compatible with carbon-neutral fuels, reflecting Toyota's CO2 footprint commitment as it juggles electric and combustion systems.
Toyota’s almost stubborn persistence in advancing its ICE advantage, despite the rising tide of EVs, highlights its 'multi-pathway approach' to carbon neutrality.
By enhancing ICE efficiency and versatility, Toyota wants a diverse range of solutions for reducing its carbon emissions.
Whether this strategy will ultimately benefit the company remains uncertain. However, Toyota is in a prime position to capitalise on technology no one else (save for BYD) appears capable of matching at this moment. Subaru and Mazda are certainly trying.
In real-world terms, we might get to experience this technology as soon as 2025, when Toyota plans to launch a barrage of hybrid sports cars, potentially including a resurrected MR2 and a modern Celica.