Toyota is building a new ultra-luxury brand around its storied Century nameplate, but unlike many rivals racing toward full electrification, the company is making clear that its flagship will not abandon combustion. The new Century models are being positioned as opulent, chauffeur-focused vehicles that still rely on an engine, even as the broader market leans into battery power. That choice puts Toyota at the center of a high-stakes debate over what luxury should look and sound like in an era of tightening emissions rules and fast-rising electric competition.
Instead of treating internal combustion as a relic, Toyota is doubling down on the idea that engines can be cleaner, more efficient and more exclusive, especially when paired with hybrid systems. The company is effectively betting that a certain slice of wealthy buyers still wants the feel of a traditional powertrain, wrapped in cutting-edge technology and old-school craftsmanship, and that this audience is large enough to sustain a dedicated brand.
Toyota’s Century brand steps out of the shadows
Toyota has long treated the Century as a kind of internal secret, a chauffeur car reserved for Japan’s elite and rarely discussed in the same breath as global luxury badges. That is changing as the company moves to turn Century from a single limousine into a full ultra-luxury brand, with multiple body styles and a clear mandate to sit above Lexus in price and prestige. In effect, Toyota is elevating a once-niche flagship into a global calling card, using the Century name to signal handcrafted comfort and a level of quiet, insulated travel aimed squarely at heads of state and corporate chairmen.
The company has already unveiled a concept that shows how this transformation might look, describing plans to turn its long-running Century car into a dedicated luxury line for the automaker. With the new brand, Toyota is explicitly targeting the same rarefied space occupied by Rolls-Royce and other chauffeur-first marques, positioning Century as a halo that sits apart from mass-market models and even from Lexus. That intent is clear in early presentations that frame With the Century brand, Toyota is creating a new top tier luxury brand for the automaker, one that leans on decades of heritage while stepping into a far more public role.
Ultra-premium ambitions: taking on Rolls-Royce
By spinning Century into its own marque, Toyota is not just chasing higher margins, it is openly challenging the European establishment. The new ultra-premium brand is being framed as a direct answer to the likes of Rolls-Royce, with a promise of posh vehicles that prioritize rear-seat comfort, bespoke materials and a sense of ceremony every time the door closes. That is a bold move for a company better known for Corollas and Hilux pickups, but it reflects Toyota’s confidence that it can translate its reputation for reliability into the rarefied world of six-figure limousines and SUVs.
Early descriptions of the lineup make that competitive intent explicit, with Toyota’s new ultra-premium brand, Century, promising a line of posh vehicles designed to take on the likes of Rolls and Royc. The Century name itself carries weight, having been used on a limited run of V12 limousines from 1997 to 2017, and Toyota is now leveraging that history to argue that it belongs in the same conversation as the British ultra-luxury stalwarts. In doing so, it is also signaling that the new brand will not be a styling exercise, but a serious, long-term play in a segment where heritage and consistency matter as much as technology.
“It will have an engine”: ICE at the heart of Century
What truly sets Century apart from many new luxury projects is Toyota’s insistence that the flagship will not be fully electric. Executives have been explicit that the next generation of Century models will retain internal combustion power, likely in sophisticated hybrid configurations, rather than switching entirely to batteries. That stance is not a half-hearted compromise, it is a deliberate choice to preserve the character, range and refueling convenience that come with an engine, even as regulators and competitors push hard toward zero tailpipe emissions.
The company has already confirmed that its next Century luxury vehicle will not be all-electric and will instead employ a powertrain combining internal combustion with electrification, a setup that keeps an engine at the center of the experience. The Toyota premium brand which is being built around the Century name is expected to use this hybrid ICE layout across its core models, even as the exact mix of body styles is yet to be decided. In practical terms, that means the new Century will bring ICE power into a segment where many rivals are racing to advertise fully electric flagships.
A luxury flagship that refuses to go all-electric
Toyota’s refusal to make Century a pure EV is not happening in a vacuum, it is unfolding as the broader luxury market experiments with battery-only limousines and SUVs. Some analysts see the decision as a misread of the moment, arguing that the wealthiest buyers are often the first to adopt new technology and that a combustion-based flagship risks looking dated before it even arrives. Others counter that ultra-luxury customers value choice and that a hybrid Century could appeal to clients who want electric smoothness without the range planning that still comes with long-distance EV travel.
Critics have already framed Toyota’s new ultra-luxury brand as being constrained by its plans to stick to ICE, warning that a flagship built around internal combustion could be out of step with tightening emissions rules and shifting public sentiment. The Century is considered the most luxurious model in Toyota’s history, and expectations were high that its new brand incarnation would be as electric as expected, yet the company has instead chosen to double down on combustion. That tension is captured in assessments that describe Toyota as risking its new ultra-luxury brand by anchoring it so firmly to ICE, even as the company insists that its hybrid strategy is a more realistic path for its customers and markets.
How Century fits into Toyota’s broader ICE strategy
The Century decision is part of a much larger pattern inside Toyota, where internal combustion is being treated not as a dead-end technology but as a platform for reinvention. Company leaders have repeatedly argued that engines still have a bright future, especially when paired with electrification and alternative fuels, and they are investing accordingly. That philosophy helps explain why Toyota is comfortable launching a new luxury brand that leans on combustion at a time when many rivals are announcing end dates for ICE sales.
In public comments, Toyota powertrain president Takashi Uehara has been cited as a key voice behind this strategy, with the company described as adamant that the internal combustion engine still has a bright future and as a partner in developing advanced powertrains that can coexist with EVs. Those remarks have been linked to broader efforts to refine engines for hybrid applications, including work that has been compared to the fifth-generation Range Rover’s sophisticated drivetrains. The message from Aug and other internal discussions is consistent: Toyota sees ICE as a core technology that can be cleaned up and modernized rather than abandoned, and Century is a high-profile showcase for that belief.
New engines, new fuels: Toyota’s tech hedge
To support this long-term commitment to combustion, Toyota is not relying on legacy engines, it is developing a new family of high-tech units designed to work seamlessly with hybrid systems. These engines are being engineered to burn multiple types of fuel and to integrate tightly with next-generation electrified drivetrains, which is crucial if they are to meet future emissions standards while still delivering the refinement expected in a luxury flagship. For Century buyers, that could translate into powertrains that feel traditional in character but are far more efficient and flexible under the skin.
The company is not pursuing this path alone. Toyota, Mazda and Subaru are teaming up on a new family of high-tech engines that will burn multiple types of fuel and will be purpose-built to pair with next-generation hybrid systems, an effort that spreads development costs while accelerating innovation. This collaboration is part of a broader industry trend toward high-tech engines that can run on alternative fuels, including synthetic options, and that are optimized for hybridization rather than standalone use. For Century, this means the brand’s insistence on having an engine is backed by a clear technical roadmap rather than nostalgia.
Market signals: ICE demand is not disappearing
Behind Toyota’s confidence sits a global market that still buys enormous numbers of combustion engines, even as EV sales grow. Forecasts for the internal combustion engine market point to substantial demand well into the next decade, suggesting that a complete and rapid shift to battery-only vehicles is unlikely in many regions. For a company that sells vehicles in markets with limited charging infrastructure and diverse fuel policies, that reality makes a hybrid-centric strategy look less like stubbornness and more like risk management.
Industry projections indicate that internal combustion engine demand is expected to surge to 5,19,080.90 thousand units by 2034, a figure that underscores how large the ICE market remains even in a decarbonizing world. Next-gen engines are intended to provide better efficiency and performance and be compatible with alternative fuels, with companies like Toyota, Mazda and Subaru doing hybrid systems and Subaru doing a hybrid boxer to keep combustion relevant. Those Next generation ICE projections help explain why Toyota is comfortable launching a new luxury brand that leans on engines, even as it invests heavily in EVs elsewhere in its portfolio.
Luxury rivals pivot to electric flagships
While Toyota builds a hybrid-centric Century, its most obvious rivals are racing in the opposite direction, using fully electric flagships to signal their vision of the future. Rolls-Royce, for example, has already introduced the Spectre as its first series-production EV and is preparing additional electric models that will sit atop its range. For buyers who want their luxury car to be a statement about environmental consciousness as much as comfort, those vehicles offer a clear alternative to any combustion-based flagship, no matter how sophisticated its hybrid system.
Plans in the ultra-luxury space point to a steady expansion of electric offerings, with Rolls-Royce expected to unveil a new electric car that will sit on its familiar Architecture of Luxury platform and slot alongside existing models that will supposedly get a facelift in 2027. Whatever the exact product cadence, the direction of travel is clear: brands like Rolls-Royce are using EVs to redefine what a top-tier limousine should be, while Toyota is using Century to argue that there is still room for engines at the summit of the market. That contrast is captured in reports that note Whatever the case for Rolls-Royce’s next EV, Toyota is charting a different course with Century.
A broader “return of reality” on engines
Toyota’s stance on Century also fits into a wider reassessment of how quickly the auto industry can, or should, abandon combustion. After years of aggressive EV targets and marketing, some manufacturers are quietly recalibrating their timelines, citing infrastructure gaps, cost pressures and consumer hesitancy. In that context, Toyota’s decision to keep an engine at the heart of its new luxury brand looks less like an outlier and more like an early expression of a broader “return to reality” in powertrain planning.
Commentary on Toyota’s latest V-8 developments has framed them as a signal of a shift back to the marketplace, with the company portrayed as defending its identity by insisting that its flagship products will still have engines. One analysis captured this sentiment with a simple quote, “Yes, it will have an engine,” describing it as a company defending its identity rather than chasing every trend. That perspective, reflected in The Return of Reality, helps explain why Toyota is comfortable launching Century as a hybrid-first luxury brand even as rivals tout all-electric flagships.
Century’s EV-adjacent positioning and future flexibility
Even as Toyota resists making Century fully electric, it is careful to keep the brand close to the EV conversation. The company has repeatedly described Century as ultra-premium and future-facing, emphasizing that its hybrid systems will deliver electric-like smoothness and the ability to operate silently in many conditions. That positioning allows Toyota to appeal to buyers who are curious about electrification but not yet ready to commit to a battery-only limousine, especially in markets where charging infrastructure remains patchy.
With the debut of the new Corolla concept in Japan, Toyota also highlighted its new ultra-premium brand, Century, promising a line of posh vehicles designed to take on the likes of Rolls-Royce while sitting alongside a broader electrified portfolio. Those presentations underscore that Toyota is not ignoring EVs, it is simply choosing to give Century a different technical foundation for now. By building the brand around flexible hybrid architectures and high-tech engines, Toyota also preserves the option to introduce more heavily electrified or even fully electric Century variants later, without abandoning the core promise that, at least for its first generation as a standalone marque, the car “will have an engine.”
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