Toyota plans billion-dollar deal with sale of new engines and hybrid technology
Image: Toyota
Toyota plans to generate annual sales potential of around $1.7 billion by selling its next generation of engines and hybrid technologies to partners. According to Automotive News, the world’s largest automaker aims to achieve greater scale benefits through collaboration with partners.
The new propulsion systems, which were introduced in 2024, are expected to hit the market starting next year. The portfolio includes a 1.5-liter four-cylinder engine and a 2.0-liter four-cylinder turbo engine. Both engines are more compact, efficient, and powerful than their predecessor models and can be paired with standard as well as plug-in hybrid systems.
According to the report, the new design of these engines is shorter and narrower than that of current models. These reduced dimensions are intended to facilitate better integration into future, slimmer electric vehicle designs and increase flexibility in offering combustion, hybrid, or purely electric options under the same model. Additionally, Toyota believes that these smaller engines can be more easily integrated into platforms from other brands.
Hiroki Nakajima, the technology chief, introduced this strategy for selling powertrain systems to investors during a technology workshop in Europe, according to Automotive News. Toyota is already leveraging partnerships by supplying hybrid powertrains for the Mazda CX-50 and Mazda2 in Europe, as well as electric components for a Subaru hybrid system. Suzuki also uses various Toyota powertrain systems.
Toyota has not named specific customers for the new generation. However, it already has alliances with Japanese manufacturers such as Mazda, Subaru, Suzuki, and Daihatsu, in which the company is also involved. The fact that this topic was explicitly discussed at an event in Europe suggests that the Japanese company aims to sell new engine and hybrid technologies to other firms here as well.
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Thomas Langenbucher is an expert in electromobility with professional experience in the automotive industry and finance sector. Since 2011, he has been covering electric vehicles, sustainable technologies, and mobility solutions on ecomento.de. Learn more.
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