Japan's top three automakers pledge to develop new low-carbon engines in a joint statement.

Japanese automakers Toyota Motor, Subaru Corporation, and Mazda Motor announced in a joint statement on Tuesday that they are committed to developing new engines aimed at electrification and reducing carbon emissions.

The three companies will work together to develop engines that better integrate motors, batteries, and other electrical components. At the same time, they will strive to decarbonize by adapting traditional internal combustion engines to more carbon-neutral fuels.

The planned engines will be more compact, allowing for a lower vehicle front height to enhance performance.

This announcement comes at a time when global emission regulations, especially in key markets like Europe, are becoming increasingly stringent.

To this end, as the world's largest automaker, Toyota performed well in 2023, driven by strong demand for its hybrid models. The company pioneered hybrid technology over two decades ago with the Prius.

Cost-conscious consumers opted for Toyota's cheaper hybrid models rather than the relatively expensive pure electric vehicles. However, the company is cautious about its outlook for the fiscal year 2025, anticipating a slowdown in sales next year.

Japanese automakers generally remain skeptical about pure electric vehicles, with Toyota particularly relying on its hybrid technology. Toyota holds shares in Subaru and Mazda and provides engines for these two companies.