Toyota has recently unveiled a new line of compact 'adaptable' engines that are designed to work with both hybrid cars and those that run on biofuels. According to the company, these new engines are intended to reduce carbon emissions while catering to diverse customer needs.

At a recently held media event with peers Subaru and Mazda Motor, Toyota displayed in-development 1.5-litre and 2.0-litre engines with significantly reduced volume and height versus current engines. "With these engines, each of the three companies will aim to optimise the integration with motors, batteries, and other electric drive units," they said in a joint statement. Toyota owns about a fifth of Subaru and roughly 5% of Mazda.

The three said their efforts will help decarbonise internal combustion engines by making them compatible with alternative fuel sources such as e-fuels and biofuels. They also hope more compact engines will revamp vehicle design by allowing for lower hoods.

The Japanese automaker said its new 1.5-litre engine will achieve volume and weight reduction of 10% of versus its existing 1.5-litre engines, which it uses in cars such as its Yaris compact. The new 2.0-litre turbo engine will have similar gains versus existing 2.4-litre turbo engines used in bigger models such as three-row seating sport utility vehicles. Chief Technology Officer Hiroki Nakajima declined to say when Toyota will launch models equipped with the engines.

While electric vehicles have become more prominent in recent years, Toyota has been following a "multi-pathway" approach to carbon neutrality with vehicles offering a range of powertrains. It sold about 2.4 million vehicles in January-March of which nearly two-fifths were petrol-electric hybrids. Plug-in hybrid, fuel-cell, and all-battery electric vehicles together accounted for just 2.9%.