A couple of car manufacturers are at the forefront of these inventions, such as Tesla, which set the foundation for many electric cars, BYD with all-electric vehicles and hybrid engines, and traditional brands like Volvo, Toyota, and Nissan, which are also investing heavily in this market. The Japanese manufacturers are always on the verge of creating something new. The motor vehicle industry is one of the most technologically advanced in the world. Combustion engines, electric powertrains, and hybrid sets are all synonymous with advancements in technology.
Collaborations pushing the industry forward
Beyond the country’s reputation for being at the forefront of technology, they are also constantly collaborating with each other to find the best new products. They will compete in the market later, but if something advances and pushes the industry forward, Japan-based manufacturers, especially Toyota, will work together.
With that in mind, one of the most well-known Honda cars, the NSX, was created in collaboration with other areas of the industry: the automotive industry. In the late 1980s and the early 1990s, the manufacturer’s sports division created engines for McLaren in Formula 1. After a while, working together, the legendary driver Ayrton Senna helped the Japanese mechanics to develop the best possible driving experience at the time. Years later, they continue to impress with this new engine.
Toyota to launch new turbo engine
Toyota’s new engine lineup might be one of its boldest moves yet. According to Hiroki Nakajima, the company’s Chief Technology Officer, the new four-cylinder engines were built with both power and future integration in mind. They come in 1.5 and 2.0-liter versions, and even though they are designed to fit hybrid systems, performance still seems to be a priority, especially for the 2.0-liter turbo.
Last year, the brand tested this engine in a stripped-down Lexus IS. More recently, they showed it inside a GR Yaris test car at the 2025 Tokyo Auto Salon. Official numbers were not released, but journalists at the event said it could go beyond 400 horsepower. That number was already mentioned during a workshop in 2024, where Nakajima pointed to 400 PS — around 394 hp — as the target.
Later, Nakajima even hinted that they could push it further. The engine was said to deliver close to 500 Nm of torque (about 369 lb-ft), and Toyota is also working on a toned-down version with around 300 PS (296 hp). On the track, though, the same engine could be tuned to make over 600 hp. It is flexible, too — it can be mounted both sideways and lengthwise, depending on the car.
Toyota is used to creating supercars
Toyota already uses a turbo 2.0 engine in the current Supra, made in partnership with BMW, but that model is on its way out. The Supra name will stay, though. What engine it gets next is still under wraps.
Even with most of the market leaning toward SUVs and emissions rules getting tighter, the manufacturer still seems interested in keeping sports cars alive. It is not the biggest part of the industry anymore, but the Gazoo Racing division appears ready to compete with the likes of Mercedes-AMG, Audi Sport, and BMW M. The idea is probably to offer strong performance at a lower price, while Lexus stays focused on going head-to-head with the more expensive German models, which will soon have more competition.
BYD is expanding its car portfolio and opening three new factories in Europe to help create more vehicles for the public on the old continent, while also keeping the import taxes low. The car is being created to compete with other famous models. Other brands are also investing in Europe, but with specific cars created for the local market.
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