Shown as a concept at the Japan Mobility Show, the 13th generation Corolla, is set for a full-on reinvention. Though the Corolla is known as the car for the majority, the majority don’t necessarily want the same answer. Thus, it will gain a variety of powertrains ranging from internal combustion, hybrid electric, plug-in hybrid, and even pure battery electric to maintain the model’s global relevance.

Among the new engines confirmed to be fitted in the all-new Corolla is a next-generation 1.5-liter with a high thermal efficiency resulting in big fuel economy gains.

The engine was first shown last May 2024, but now, Toyota has revealed more details. Carrying the “N15” codename (still subject to change, Toyota says), this new 1.5-liter 4-cylinder engine will have a 10 percent reduction in both volume and height compared to the current 1.5-liter. This will result in bolder designs with lower hood lines, roomier cabins, and airy greenhouses. It will also adopt a Miller cycle, eliminating the current Atkinson Cycle’s more complicated packaging.

Still in development, the combustion engine alone makes 95 horsepower and 120 Nm of torque. Meanwhile, the combined output is being targeted to be at least 100 kW (135 horsepower)—making it just as powerful as Toyota’s current crop of electrified 1.8-liter hybrids but with 20 percent better fuel efficiency. Providing power to the electric motor (which itself has a “secret component”) is a lithium-ion battery pack, while the transmission will be an E-CVT.

The next-generation Toyota engines are also built with extreme modularity in mind meaning economies of scale and easier maintenance/parts replacement. In addition, the packaging will enable Toyota to use EV-first platforms as a starting point, which can be easily re-engineered to fit either a hybrid or even plug-in hybrid layouts.

To prove that point, Toyota showed the “G20E-GTS” which could one day power high-performance variants of the Corolla and other sports-oriented models.

Already powering the GR Yaris M Concept, this 2.0-liter turbocharged 4-cylinder is highly flexible in that it’ll fit in both transverse and longitudinal layouts. It will also be able to take on a variety of transmissions including a manual gearbox. Using 100 octane fuel, the G20E-GTS produces around 400 horsepower; up to 600 horsepower in race trim.

Takashi Uehara, president of Powertrain Company and the Chief Project Leader of Powertrain System Development Field, has also confirmed that Toyota will continue to work on diesel engines for the foreseeable future.

Uehara said that the most complicated part with diesel engines is to make it meet the stricter emissions standards. While complex exhaust systems can enable diesels to achieve it, it may make it more expensive. Therefore, he has confirmed that Toyota is looking at electrification as a possible answer. By adding a hybrid system to a diesel engine, the carmaker may be able to reduce emissions without the need for a complex and expensive exhaust system.