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Toyota, Mazda, And Subaru Collaborating To Develop Compact, Carbon-Neutral Engines

Thoriq Azmi

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Executives from Toyota, Subaru, and Mazda together at the joint press conference announcing their collaboration for compact next-generation combustion engines compatible with carbon-neutral fuels and electrification.


Earlier today, Japanese automakers Toyota, Mazda, and Subaru held a joint press conference detailing their new collaborative joint venture. Together, these three automakers have committed to create a new wave of compact internal combustion engines (ICEs).

Key to this are said future engines’ compatibility with carbon neutral fuels and electrification. All three firms are teaming up to both accelerate development and lower costs for each other, and here’s the twist – each firm will make their own ‘signature’ engine.


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All three automakers noted that these new compact engines will lead to future models with lower hoods for better aero.

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Toyota showed off prototypes of its future 1.5-litre and 2.0-litre in-line 4-cyl mills for this collaboration, both promising high output and high thermal efficiency.


Starting with Toyota, the automaking giant and global leader will prepare a new series of in-line 4-cyl mills, whereas Mazda will pursue development of its rotary engine tech, and Subaru seeks to continue improving its horizontally-opposed or ‘boxer’ engine format.

Amongst the carbon-neutral fuel types these future engines will harness include liquid hydrogen, biofuel, as well as synthetic fuel. Collectively, these engines will also be designed for flexibility to integrate motors, batteries, and other electric drive units.

At the joint press conference detailing this new joint venture, samples of these future ICEs were displayed.


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Mazda showed single- and dual-rotor forms of its signature rotary mill, and the firm notes the mill's application in EVs specifically, likely as a range-extender or generator.


Mazda brought both a single- and dual-rotor versions of its signature rotary mill designed primarily for application in electric vehicles (EVs). As seen in its MX-30 and Iconic SP sportscar concept, this mill acts as a range-extending generator module – it doesn’t drive the vehicle directly.

Toyota’s samples were more traditional, and the global automaking giant showed both a 1.5-litre and 2.0-litre displacement versions of its next-generation engine. Toyota didn’t elaborate much about either compact mills other than having “high output and high thermal efficiency.”


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Subaru, on the other hand, displayed a camouflaged Crosstrek-based test-bed featuring its next-gen hybrid tech.


Subaru, on the other hand, showcased a next-generation hybrid system that being tested in a camouflaged Crosstrek prototype base. Subaru were coy on details too, but the firm currently has hybridised models that combines a 2.0-litre boxer 4-cyl mill with a 12.3 kW e-motor and a compact lithium-ion battery pack.

Despite joining forces, Toyota, Mazda, and Subaru made it crystal clear they'll remain rivals. Additionally, because these new engines will be smaller, the trio says future models are going to have lower hoods for better aero to further improve efficiency. At the same time, these changes will give designers more freedom.



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Thoriq Azmi

Former DJ turned driver, rider and story-teller. I drive, I ride, and I string words together about it all. [#FuelledByThoriq] IG: https://www.instagram.com/fuelledbythoriq/

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JPJ Running Numbers

KUALA LUMPUR

VQH2149

SELANGOR

BSL5615

JOHOR

JYP5011

PULAU PINANG

PRX4850

PERAK

APE430

PAHANG

CFE7261

KEDAH

KGD7503

NEGERI SEMBILAN

NEJ2478

KOTA KINABALU

SJP6849

KUCHING

QAB105N

Last updated 10 Jan, 2026

Fuel Price

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RON 95

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RM 5.00

VPR

RM 6.23

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EURO 5 B10

RM 2.89

-0.05

EURO 5 B7

RM 3.09

-0.05

Last updated 08 Jan, 2026

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