Toyota Motor Corp., Mazda Motor Corp., and Subaru Corp. said Tuesday that they will each develop engines to enhance the performance of their electrified vehicles, including hybrid and plug-in hybrid models, as part of efforts to increase the competitiveness of their gasoline-electric line-ups.

With the shared goal of achieving carbon neutrality, the three Japanese automakers aim to develop smaller, more efficient engines with higher output than existing models while also collaborating on the use of carbon-neutral fuels, they said.

Such engines will enable vehicles to carry more batteries and emit less carbon dioxide, allowing them to operate like EVs most of the time while providing engine power for long-distance travel, they said.

"We will develop engines that perfectly fit the era of electrification," Toyota CEO Koji Sato said at a joint press conference.

"As technologies for all-electric vehicles advance, we need to think about plug-in hybrid vehicles that center around electric power rather than internal combustion engines," he said.

The announcement comes as global EV sales have been slowing. Despite early adopters driving a rapid rise in the genre, many consumers remain hesitant to buy all-electric vehicles due to their limited range and a lack of charging stations.

Toyota Chairman Akio Toyoda has highlighted the need to maintain the development of engines despite the industry's rapid shift toward EVs, saying they still play an important role in the era of decarbonization by expanding power train options.

The effort will benefit Japan's auto supply chains, which were built around gasoline-powered cars and are currently struggling with the global shift to EVs.

==Kyodo

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