While much of the automotive industry is reducing investments in internal combustion engines, Toyota has chosen to transform this technology into a new and significant source of revenue. The Japanese manufacturer intends to commercialize its engines and hybrid systems to other automakers, aiming to generate approximately R$ 9 billion annually from this venture by 2032, according to Automotive News.
This goal represents a threefold increase over the estimated revenue of R$ 3 billion that third-party supply should generate in 2026. The first deliveries of this new engine line are scheduled for 2027.
The new engine family consists of three alternatives, all with four cylinders: a 1.5 naturally aspirated model, a 1.5 turbo, and a 2.0 turbo, all of which have the capability to operate integrated with hybrid systems. The 1.5 engine will be used to replace the units currently installed in models such as the Yaris and Corolla. The 1.5 turbo offers power equivalent to an existing 2.5 naturally aspirated engine, and the 2.0 turbo promises to surpass the performance of the 2.4 turbo that equips large SUVs and trucks of the brand in the United States.
Developed already considering electrification, these engines present physical advantages, being 10% smaller in volume and height. This dimensional reduction allows for a lower hood height, which contributes positively to aerodynamics and gives designers greater flexibility.
According to Toyota itself, the adoption of the new 1.5 engine results in a 12% fuel economy saving in a sedan.
The first expected buyers are traditional partners of the company, including Mazda, Subaru, and Suzuki, in addition to Daihatsu, which is a Toyota subsidiary. These five brands together move about 16 million vehicles annually.
It is important to note that this partnership does not imply abandoning the internal projects of these automakers; for example, Mazda continues to develop the Skyactiv-Z engine and a hybrid system for the CX-5, while Subaru maintains its focus on boxer engines, characterized by opposed horizontal cylinders.
For Toyota, this strategy serves to distribute development costs across a larger number of units and make its engines more competitive against competition from China. In turn, the other manufacturers benefit by gaining access to innovative mechanics without having to bear the full cost of creating them from scratch. Additionally, Toyota has also developed the 4.0 V8 engine, but for now, it is not part of the sales plans for other brands.