Toyota develops new engines for sale

Toyota is developing a new family of internal combustion engines and plans to sell them to other car manufacturers, despite the industry's growing focus on electric vehicles. This move is expected to generate 1.5 billion euros in annual revenue by 2032.

Industry shift toward electrification

Most automotive manufacturers are adapting existing engine designs to meet stricter emissions standards and reduce costs, rather than creating entirely new engines. Toyota, however, is choosing to develop new powertrains specifically for sale to competitors.

Financial goals and early sales

According to Automotive News, Toyota aims to reach 1.5 billion euros in annual sales from engine and hybrid system exports by 2032. It has set a target of 500 million euros in orders for this year, with initial deliveries potentially starting in 2027. No specific customers have been named yet.

Existing partnerships and shared technology

Toyota has existing ties with several automakers, including Daihatsu, Subaru, and Mazda, through ownership stakes and technical collaborations. For example, Mazda uses Toyota's hybrid technology in some of its models, and Subaru uses electrical components from Toyota for its hybrid vehicles.

Competition and technical independence

Despite these links, competitors like Mazda and Subaru are developing their own hybrid and engine technologies. Mazda's Skyactiv-Z engine, for instance, is being marketed as an "ideal internal combustion engine." This suggests that Toyota may face challenges in convincing other brands to adopt its engines.

Engine design for electrification

The new engines are designed with electrification in mind, with the smallest models intended for hybrid vehicles. The 2.0-liter turbo engine, for example, is expected to be more efficient than current models, while the 4.0-liter V8 used in the GR GT is not planned for sale to other manufacturers.