Toyota signals it will be the last major automaker to produce internal combustion engines, signaling a long-term strategy that keeps gas engines relevant alongside electrification.

The company’s CTO emphasizes the goal of remaining an engine-producing firm for the foreseeable future, highlighting gas engines’ relevance beyond broad EV adoption.

The plan aims to balance emissions reductions, real-world consumer needs, and continued interest in internal combustion through fuels like synthetic carbon-neutral options.

Toyota’s powertrains chief notes advantages of gas engines, including recyclable aluminum construction and high power-dense fuels, and points to a new 1.5-liter four-cylinder hybrid with about 134 horsepower and 10–20% better fuel economy than current hybrids.

At the Japan Mobility Show, Toyota unveiled a Corolla concept that looks electric but is designed to house a compact gasoline engine in the front nose to preserve silhouette and cabin space.

Former CEO Akio Toyoda argues for a broader CO2 strategy that isn’t limited to battery-electric vehicles as the sole path to cuts.

Toyota envisions a practical hybrid and gas-engine future for core models like the Corolla, aiming at customers not ready for full EVs, while leaving the long-term status of gas engines open.