Saying the automotive world is in a bit of limbo may be an understatement. On one hand, you have the world’s largest market, China, accepting EVs and plug-in hybrids in even greater numbers than ever before. Meanwhile, in Europe, manufacturers are pulling back on their EV manifestos as the European Union provides some respite in the face of slower-than-predicted adoption.

Toyota, by contrast, has always been pro-ICE. For years, the company has questioned its competitors and governments, who have been advocating exclusively for electric vehicles. And while the company has shown off various plans for EVs, they’ve maintained a more balanced approach.

Read: Toyota GR GT Looks Like A Batmobile And Hits Like A Supercar

Now, it may be clear that Toyota wasn’t going to say goodbye to combustion without a fight, but we imagine not many would have predicted the unveiling of the GR GT: a production-slated halo supercar with a ferocious twin-turbocharged 4.0-liter hybridized V8 engine.

The Fight for Identity

In an era of tightening emissions regulations and downsized powertrains, the decision to green-light a V8 may seem almost rebellious. But for Toyota, the GR GT isn’t about volume or compliance alone. It’s about identity.

Nikkei Asia notes that the GR GT has been built without the assistance of Yamaha, unlike its spiritual forefathers, the 2000GT and Lexus LFA. “Automobiles, as an industrial product, are in danger of becoming commoditized,” says Toyota Chairman Akio Toyoda. “The engine still has a role to play,” underscoring the importance of the in-house powerplant.

The reality is that Toyota’s focus on keeping engines around will permeate throughout its lineup for the foreseeable future. In June 2025, Toyota convened suppliers at an internal combustion engine rally, where executives outlined plans to develop new engines, including high-output units, while maintaining overall engine production volumes through 2030.

It was a clear signal that Toyota sees a long runway for combustion, even as the market fragments.

Satisfying the Giants: US vs China

However, Toyota is still hedging its bets with EVs, especially when it comes to China. Over there, the car-buying population continues to march towards an all-electric future.

Toyota, like all foreign manufacturers, is feeling the pinch against local rivals. At a supplier event in Shanghai last summer, a Toyota executive drew rare applause by declaring, “In China, we will focus not on cars for the global market, but on cars made specifically for China.”

More: Toyota’s New Flagship bZ7 Sedan Is Here But Not For Us

He added pointedly that if Japan’s headquarters hesitated on investment, he would “explain things to them directly.”

That shift is already visible in the product lineup. The bZ3X electric SUV, launched in March 2025 through GAC Toyota, was co-developed with Guangzhou Automobile Group and uses cost-effective lithium iron phosphate batteries. Priced from 109,800 yuan or about $15,300, it surpassed 10,000 units in monthly sales by November. A bZ7 electric sedan is set to follow.

Hybrid Momentum in America

Back in the US, where EV adoption is not as clear-cut, Toyota is investing in hybrid production. The move is driven by strong demand as hybrids accounted for roughly 13 percent of new-vehicle sales in the U.S. during the third quarter of 2025.

Toyota opened its new battery plant in North Carolina on November 12. Toyota Motor North America President Tetsuo Ogawa called it “a pivotal moment in our company’s history.”

On the same day, Toyota announced plans to invest up to $10 billion over five years to expand U.S. production of hybrids and related components, boosting output at five American plants and reducing reliance on Japanese imports.

Is Betting on Everything the Smartest Bet?

Of course, building cars powered by everything from V8 hybrids to LFP-battery EVs is expensive. Toyota spent ¥1.3 trillion on R&D in the year ending March 2025, which is roughly on par with BYD, and well ahead of many rivals.

To manage the burden, Toyota has begun leaning more openly into partnerships, including work with NTT on AI-based crash prevention and a collaboration with Waymo on autonomous driving.

In a market increasingly obsessed with picking a single technological winner, Toyota’s refusal to do so may look risky. But if the global auto future really is plural rather than uniform, betting on engines, rather than shunning them, may yet prove to be the company’s most calculated move of all.

After plenty of waiting, the new Toyota GR GT is here, and so is the return of the Lexus LFA. These two new Japanese supercars might not have shown up in all the ways we expected but one thing is clear: while they’re linked, they’ll have very different personalities from behind the wheel.

Now, a new in-depth video shows us just how Toyota and Lexus made each of their respective cars stand out from the other.

More: Toyota GR GT Looks Like A Batmobile And Hits Like A Supercar

Many might consider the GR GT to be a more faithful successor to the LFA. That’s due heavily to its hybrid V8 engine that makes some 641 horsepower (477 kW). That said, it’s clear that Toyota wasn’t trying to steal the LFA’s thunder when you take a quick look at the finer details.

That’s exactly what Top Gear just offered, with a detailed breakdown of both cars from nose to tail. The GR GT, in particular, leans hard into its driver-first philosophy. Its design is dominated by functional aero, from oversized intercooler openings to a rally-style hood vent that channels air up and over the windshield.

Much like the AMG GT or if we go further back in time, the Dodge Viper SRT and its derivatives, the GR GT has a lengthy hood, a small but highly functional cabin, and a squat, wide stance.

Presenter Tom Ford highlights how the driving position communicates intention. The seat height, digital gauge cluster, and steering wheel are all set up for optimal visibility. That’s key because the car has shift lights and vital information there.

The car only has four drive modes, custom, normal, sport, and track. The center control stack features physical buttons and switches. The cupholders are behind the occupants and in the middle because they’re not the focus here.

Of course, the track-only FIA-compliant GT3 race car version is even more extreme. It gets every bit of roll cage one might expect and then some. The cabin features almost zero creature comforts but what it lacks there it makes up for in naked carbon and switchgear. The spoiler at the rear is as wide as the car itself.

Then, there’s the LFA, and when we say it’s different, it’s not just because the V10 is gone in favor of all-electric propulsion. Ford points out that Lexus took full advantage of the EV powerplant, going as far as to design the exterior with it in mind. As such, the LFA gets almost none of the same venting and aero from the GR GT. It simply doesn’t need it.

The lines are more elegant. Take, for example, the hood where long strakes run from the top of the lights to the windshield. Instead of hard edges everywhere, the design is smoother with more compound curves.

That approach carries into the interior, which leans heavily on refinement. The split-cabin layout gives the driver their own space, while the controls are smaller and more delicate, matching the car’s calmer energy.

In short, these two sport models might have a lot of shared DNA, but there’s no doubt that they’ll drive quite differently. In fact, there’s little question that they’ll feel different for occupants even when they’re powered down.