Toyota will completely revamp its petrol engine and transmission line-up by 2010 in order to strengthen its efforts to preserve the environment.

As part of this effort, a new 1.8-litre petrol engine and continuously variable transmission (CVT) have been developed for Toyota's compact and midsized passenger vehicles.

Toyota is aiming to reduce its emissions levels by 75% lower than the minimum standards set by the by Japanese Ministry of Land, Infrastructure and Transport’s Approval for Low emission vehicles by 2010.

The Japanese giant also aims to exceed the level called for by the Japanese 2010 fuel efficiency standards by 10% or more for most passenger vehicles.

Toyota is also going to double the number of hybrid models it has in its range by 2010. It will also advance its research and development of plug-in hybrid vehicles (charged from an external source) and is currently developing a next generation vehicle that can extend the distance travelled by the electric motor alone. It will also introduce bio ethanol compatible vehicles and has developed petrol engines which run reliably with a 10% bio ethanol mix.

By spring next year, Toyota is planning to introduce 100% bio ethanol fuelled vehicles to the Brazilian market. It is also considering entering these models into the US market.