In an era where some consumers are shifting towards electric cars, Toyota announced a new generation engine plan on Tuesday (May 28th), betting on the continued demand for old technologies to challenge electric car manufacturers like Tesla.
Many competitors in the automotive industry are pushing for the development of fully electric cars. During a three-hour presentation held in Tokyo on Tuesday, Toyota announced the introduction of lean and compact engines that use green fuels such as hydrogen, bioethanol, or are combined with emission-free electric motors in hybrid cars.
Toyota’s CEO, Hiroji Sato, stated that the engines have been optimized for the electrification era with the aim of contributing to achieving carbon neutrality.
Toyota has already introduced a popular hybrid car, the Prius, which features a gasoline engine and an electric motor. In future hybrid cars, the electric motor will take on the main driving role, while the new engines will be designed to provide additional power in a smaller capacity.
Sato commented, “In an era when battery electric vehicle technology is accelerating, we can also seek new roles for internal combustion engines.”
Traditional internal combustion engines have historically relied on gasoline or diesel as fuel. Currently, sales of full electric cars are slowing down due to cost and insufficient charging infrastructure, leading to a surge in demand for hybrid cars and prompting global competitors to increase investments in models that combine battery and fuel engines.
Toyota did not disclose the investment level for the new engines, but Chief Technology Officer Hiroki Nakajima stated that it is expected to be smaller than the funds allocated to electric cars and battery development.
Nakajima emphasized, “Both electric car batteries and internal combustion engines are crucial.” He added that Toyota will continue to invest in both technologies, prioritizing those that contribute to emission targets.
Toyota’s chairman, Akio Toyoda, predicted that pure electric car demand will peak at 30% of the global market, paving the way for more sales of hybrid cars.
The new Toyota engines will be 10% to 20% smaller in size and will provide higher output when used in conjunction with batteries. According to the Financial Times, an insider revealed that the new engines are expected to be initially used in hybrid cars and later in plug-in hybrid vehicles.
Analyst James Hong from Macquarie Automotive stated, “This aligns with Toyota’s strategy of diversifying bets across different technologies.” He mentioned that Toyota is essentially developing compact engines for hybrid cars that can be installed without modifying the design of next-generation vehicles.
The new generation engines will be able to run on diesel and gasoline, as well as low-emission or carbon-neutral fuels such as hydrogen or so-called e-fuels.
Mazda and Subaru’s executives joined Toyota in a rare joint appearance, committing to continued investment in fuel-based technologies.
Mazda and Subaru also unveiled engine prototypes on Tuesday.
According to the Associated Press, Waseda University School of Business Professor Takahiro Fujimoto believes that electric cars are a key solution for reducing emissions. However, they still have weaknesses, such as generating significant emissions during the manufacturing of key components like lithium-ion batteries.
“At least, I believe the proliferation and innovation of pure electric cars are absolutely necessary. But this assertion does not logically imply that all we need are pure electric cars,” he said.
Fujimoto highlighted the uncertainties in research, development, societal, political, and market conditions.
“The carbon neutrality that the world desires is unlikely to be achieved in the next few decades. It will be a long marathon,” he stated.