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

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.

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


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.


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.”


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.
Gallery
Written By
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/
JPJ Running Numbers
KUALA LUMPUR
VQM3715
SELANGOR
BSM5716
JOHOR
JYR6407
PULAU PINANG
PRY7692
PERAK
APF3579
PAHANG
CFF3710
KEDAH
KGE4109
NEGERI SEMBILAN
NEJ5496
KOTA KINABALU
SJQ3441
KUCHING
QAB2575N
Last updated 23 Feb, 2026
Fuel Price
Petrol
RON 95
RM 2.54
RON 97
RM 3.10
RON 100
RM 5.00
VPR
RM 6.23
Diesel
EURO 5 B10
RM 2.99
EURO 5 B7
RM 3.19
Last updated 19 Feb, 2026
Related News
2026 Toyota RAV4 PHEV Debuts in Japan with Special GR Sport Version
Toyota has completed the sixth-gen RAV4 lineup in Japan by debuting the PHEV version along with the GR Sport variant.
20-02-2026
2027 Toyota Highlander EV Debuts in the US – Three-Row EV SUV with 515 km Range
The Toyota Highlander has been revived as a three-row, all-electric SUV for its next-gen iteration.
11-02-2026
Toyota Appoints Kenta Kon as New President & CEO
Toyota’s current CFO, Kenta Kon, has now been appointed as the new President & CEO, replacing outgoing boss Koji Sato.
09-02-2026
Toyota Showcases Interior of a New Three-Row SUV, Debuts on Feb 10
Toyota is poised to launch a new three-row SUV this month, with its interior recently teased via social media.
03-02-2026
Toyota Remains No 1 In 2025 – 11.3 Million Units Sold, 42% Charged By Hybrids
Toyota continues to reign as world’s leading automaker in 2025 by shifting 11.3 million units, and hybrids account for 42% of which.
02-02-2026
Toyota Teases New SUV Model Ahead of US Debut
Toyota has just published a teaser showcasing its new SUV model, set to debut in the US soon.
28-01-2026
Toyota GR Yaris Sebastien Ogier 9X World Champion Edition Debuts as 200-Unit-Only Special
Toyota commemorates nine-time WRC champion Sebastien Ogier with a 200-unit-only special edition GR Yaris.
23-01-2026
Toyota Raize SUV Gains Stylish GR Sport Version in Indonesia
Perodua Ativa’s Japanese sibling, the Toyota Raize SUV, has gained a stylish GR Sport version in Indonesia.
22-01-2026
Latest News
Chinese Carmakers Still Lag Global Leaders - GWM Chairman
GWM’s chairman says Chinese automakers must focus on quality and long-term competitiveness despite rising exports and sales growth.
20-02-2026
2026 Audi RS5 Unveiled as Brand’s First High-Performance PHEV
The all-new Audi RS5 breaks cover as the brand's first high-performance plug-in hybrid model with up to 630 hp.
20-02-2026
2026 Toyota RAV4 PHEV Debuts in Japan with Special GR Sport Version
Toyota has completed the sixth-gen RAV4 lineup in Japan by debuting the PHEV version along with the GR Sport variant.
20-02-2026
BMW M Plans to Launch 30 New Models by 2030 – Report
BMW’s M division is going into full assault mode by planning to launch 30 new models by the end of this decade.
19-02-2026
China Plans to Mandate Physical Controls in Cars, Bans Yoke Steering Wheel
The Chinese government is planning to require physical controls for key functions in cars while banning yoke steering wheels.
16-02-2026
BMW Alpina Unveils New Logo, Becomes Luxury Performance Sub-Brand
BMW has unveiled a new logo for the Alpina brand, positioning it as the group's new luxury performance marque.
13-02-2026
Honda Vezel/HR-V Gains Sporty Mugen Upgrade Kit in Japan
Mugen has introduced a new upgrade kit for the Honda Vezel/HR-V in Japan, featuring two distinct bodykits.
12-02-2026
China to Release Solid-State Battery Standard in July 2026
China will release a national standard defining solid-state EV batteries ahead of commercial rollout in July 2026.
12-02-2026
Show More
trending_flat