New Toyota hybrid engine on its way, and it could return over 85mpg
Japanese giant has put all of its engineering might behind new 1.5-litre engine, and is now teasing us with what to expect

Toyota has released key details about the all-new hybrid tech that’ll be fitted to its next-generation models. Destined for use in various hybrid applications, a new four-cylinder petrol engine is a key component of the brand’s new modular powertrain programme that could yield efficiency improvements of up to 15 per cent over its current class-leading options.
The new 1.5-litre unit will replace both the existing 1.8-litre four-cylinder and 1.3-litre three-cylinder petrol engines. Designed from the outset to work within a hybrid powertrain set-up, it has lower mechanical friction, improved thermal management and reduced electrical losses. It’ll also be available in both naturally aspirated and turbocharged forms.
This combustion engine is then paired with a totally redesigned hybrid module in various sizes and layouts, from the HEV ‘parallel’ set-up found in many existing Toyota models, through to plug-in hybrids and potentially even range-extenders. However, all will feature lighter and smaller electrical components, with new electric motors, control units and inverters.
Because the engine has been optimised for hybrid applications, Toyota has created a tight physical package, which sees the overall height of the engine reduced in comparison to its predecessors. This, in turn, will allow designers to lower the bonnet height on future models, further improving aerodynamics and therefore efficiency.
By creating a single engine with various outputs, Toyota has been able to increase the economy of scale. This puts more research and development resources into one engine project that will have far-reaching applications across different models, and potentially even different brands.
With Toyota’s hybrid systems already offering fuel consumption of up to 74mpg, this new-generation set-up could see that figure rise by as much as 15 per cent – and this is before taking into account any other efficiency enhancements on the models it is fitted to.
As for what car will be first to benefit? We don’t yet know, but we do expect it to be a cornerstone technology of the next-generation Corolla, a model that’ll be available some time in 2028 with hybrid, plug-in hybrid and all-electric powertrains.
Look at the Corolla Concept from the 2025 Tokyo Motor Show and it’s clear to see the benefits this new engine’s packaging could unlock, and how radically different the next generation of Toyotas might look when this new hardware is applied.
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