New Powertrain Units Based on TNGA

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1 New Powertrain Units Based on TNGA February 26, 2018 Mitsumasa Yamagata Chief Engineer, Powertrain Product Planning Division Toyota Motor Corporation

Contents 2 New Powertrain Units Based on TNGA 1. Toyota s Initiatives 2. New Powertrain Units 1) New 2.0-liter Powertrain 2) New 4WD System

Contents 3 New Powertrain Units Based on TNGA 1. Toyota s Initiatives 2. New Powertrain Units 1) New 2.0-liter Powertrain 2) New 4WD System

Toyota Environmental Challenge 2050 4 By 2050, our goal is to reduce CO 2 emissions from new cars by 90% (compared to 2010)

Contribution to the Environment from Energy Savings 5 Sales Quantity Vehicles with conventional engines 2010 TNGA Powertrain 90% 2030 Ratio of electrified vehicles: >50% HV BEV/FCEV >10% PHV FCV EV 2020 2030 2050 年 The vast majority of vehicles (conventional engine vehicles, HVs, & PHVs) have an engine. Thus, increasing the fuel economy of powertrains is necessary for reducing CO 2 emissions.

Toyota s Fundamental Stance 6 Energy Conservation Fuel Diversification + Pursuing the Joy of Cars When widely-used, eco-friendly cars can contribute to environmental protection Responding to environmental issues while pursuing the joy of cars

Raise Production Efficiency (1) Respond flexibly to customer needs Uniform processing and assembly standards (2) Promptly provide products to customers Uniform process and facility specifications 7 A B Production Line Processing Tools (uniform) (1) Develop lines that can flexibly produce different models at high speed (2) Accelerating global deployment with the standardization of process and facility specifications

Increase Development Efficiency 8 Current Development Development using TNGA NR EGR VVT-iE Standardized structural and elemental technologies Engine modularization Cylinder capacity a No. of cylinders 4 Compact b c 6 ZR Valvematic Medium Consolidate and streamline engine types AR D-4S Large App. 40% reduction Current New Engines Achieve increases in development efficiency while contributing to higher productivity

Lineup of new powertrain models to meet diverse needs 9 THSⅡ (1.8L) THSⅡ (2.5L) Multi-stage THSⅡ Direct Shift-8AT Engines: 9 models, 17 variations Transmissions: 4 models, 10 variations HV systems: 6 models,10 variations Direct Shift-10AT 3.5-liter twin-turbo Dynamic Force Engine (2.5L) (Variations consist of front-wheel drive or rear-wheel drive, passenger or commercial vehicle, conventional or HV, differences in torque capacity, etc.) TNGA-based module development for achieving rapid introduction of 19 models and 37 variations by end of 2021

Contents 10 New Powertrain Units Based on TNGA 1. Toyota s Initiatives 2. New Powertrain Units 1) New 2.0-liter Powertrain 2) New 4WD System

New Powertrain Units 11 1) New 2.0-liter Powertrain 2) New 4WD System Engine 2.0-liter Dynamic Force Engine Transmission Direct Shift-CVT Dynamic Torque Vectoring AWD New 6MT THS II for 2.0-liter Engines New E-Four

The TNGA Powertrain Concept (Automatic Transmission) 12 Mass (kg) 100 90 80 70 60 100 CVT AT CVT 6AT 8AT 200 300 400 500 Input Torque (Nm) Toyota Competitor ( company estimate ) Diverging Use of CVT and AT Where Trends Intersects

Powertrain evolution targeted by TNGA 13 Engine torque THS CVT AT Most-efficient driving line Max. torque performance curve 1. Improved maximum thermal efficiency (deeper) 2. Expanded high fuelefficiency area (wider) 3. Improved engine torque 4. Use of high efficiency area (wider gear range) 5. High-responsed control Engine rpm Improve and maximize efficiency of powertrain systems (engines/transmissions/hv systems)

Performance of new powertrains 14 Achieve both better driving performance and better environmental performance Fuel economy (U.S. combined fuel economy) (contribution by powertrain) Conventional engine-powered vehicle 18% improvement Dynamic Force Engine(2.0L) & Direct Shift-CVT 18% shorter Current powertrain (2ZR-FE + CVT) Acceleration time (contribution by powertrain) Fuel economy (JC08 test cycle fuel economy) (contribution by powertrain) 9% improvement HV Dynamic Force Engine(2.0L) & 新 THSⅡ 18% shorter Current system (2ZR-FXE+THS) Acceleration time (contribution by powertrain) New powertrains achieve improvement in fuel economy and greater improvement in dynamic performance

New engines 15 Dynamic Force Engine (2.0-liter)

Performance of new engines 16 Specific power (kw/l) (maximum output /displacement) 100 90 80 70 60 Toyota Competitors Current trade-off line Future trend 40% 41% Dynamic Force Engine New Engine 50 New Engine HV 40 Current Toyota high thermal 30 efficiency engine 32 34 36 38 40 42 44 Maximum thermal efficiency (%) Achieves one of the world s best levels of both output and thermal efficiency

Performance of new engines 17 Output and torque curve Emissions Performance Dynamic Force Engine Current engine 80 Torque (Nm) 60 40 20 Output (kw) Japan: 2018 regulations U.S. SULEV30 Europe: Euro6 (RDE) China: National 6 etc. 800 2400 4000 5600 Engine rpm (rpm) 0 7200 Improved output and torque through optimal combustion while supporting emission controls in each country

New CVT 18 Direct Shift-CVT

New CVT Development Concept 19 Environmental performance Improved transmission efficiency Use of high-efficiency engine range Direct & smooth Highly responsive shift control

New CVT Development Concept 20 Improved transmission efficiency Use of high-efficiency engine range Highly responsive shift control Reduced mechanical loss (increased belt efficiency, etc. through the addition of a launch gear) Wider range Improved shift tracking (narrower belt angle, improved shift control, etc.)

New CVT Development Concept 21 Improved transmission efficiency Use of high-efficiency engine range Highly responsive shift control Reduced mechanical loss (increased belt efficiency, etc. through the addition of a launch gear) Wider range Improved shift tracking (narrower belt angle, improved shift control, etc.)

Wider Range 22 Conventional CVT Belt Efficiency ( Improved) Conventional CVT Efficiency deteriorates Low Gear Ratio High Belt transmission efficiency deteriorates on the low and high sides

Wider Range Direct Shift-CVT Higher efficiency when starting from full stop Gear Drive Belt Belt drive range shifted to high side 23 Efficiency ( Improved) Conventional CVT Wider Range Low Gear Ratio High A launch gear was adopted on the low side and a shift to belt drive made on the high side to achieve high efficiency over a wider range.

Improved transmission efficiency Direct Shift-CVT Gear Drive Higher efficiency during belt drive Belt 24 Efficiency ( Improved) Conventional CVT Wider range Low Gear Ratio High Efficiency is higher during belt drive and transmission efficiency is substantially higher over the entire driving range

Achieves Both Wider Range and Higher Efficiency 25 Competitiveness Transmission efficiency (%) Toyota CVT Competitor CVT Competitor DCT Gear ratio width Direct Shift-CVT Achieves a wide range at the top of the 2.0-liter class and transmission efficiency at the world s highest levels

Switching of Drive Modes While Driving 26 Gear Drive Belt Drive Gear Drive Vehicle Speed Starting from full stop Accelerating Maintaining constant speed Decelerating Braking Coming to full stop Time There are instances where a switch is made from belt to gear when the power is on in low vehicle speed range (kick down, etc.)

Improved Launch Performance 27 When Starting From a Full Stop Launch Acceleration G-force Comparison Direct Shift-CVT Vehicle front-to-back g-force Stronger response Time (seconds) Direct Shift-CVT Conventional CVT The launch gear achieves powerful, smooth acceleration

Improved Fuel Economy 28 Dashboard while driving in an urban environment While driving in an urban environment, the transmission switches from gear drive to belt drive to achieve high fuel economy driving in a consistent high-efficiency engine rotation range

Improved Fuel Economy 29 Direct Shift-CVT Fuel economy improvement (%) 1st Gen. CVT 2nd Gen. CVT +6% 3rd Gen. CVT 00 04 08 12 16 20 L/O By expanding the range and increasing efficiency, fuel economy is improved by 6%

New CVT Development Concept 30 Improved transmission efficiency Use of high-efficiency engine range Highly responsive shift control Reduced mechanical loss (increased belt efficiency, etc. through the addition of a launch gear) Wider range Improved shift tracking (narrower belt angle, improved shift control, etc.)

Enhanced Direct Sensation While Driving 31 Conventional CVT Direct Shift-CVT

Enhanced Direct Sensation While Driving 32 Miniaturization of the Pulley World s First Narrower Belt Angle 11 Conventional CVT Direct Shift-CVT 9 By adding 図 a 1. launch ベルト挟角化 gear, 11 9 the belt load is reduced, 図 2. allowing プーリー小型化 the pulley to be more compact and reducing the belt angle to improve shifting speed by 20%

Enhanced Direct Sensation While Driving When Accelerating 33 Direct Shift-CVT Gear Belt (Low) High-speed passing Engine RPM Conventional CVT Hill climbing, winding roads, sports driving Vehicle speed (km/h) Urban driving, high-speed cruising Belt (High) Sharper and more nimble shifting is possible, and when the driver wants strong acceleration, a powerful and rhythmical feeling of acceleration can be achieved

2.0-liter Powertrain Lineup 34 1) New 2.0-liter Powertrain 2) New 4WD System Engine Dynamic 2.0-liter Dynamic Force Force Engine2.0L Transmission Direct Shift-CVT Dynamic Torque Vectoring AWD New 6MT THS II for 2.0-liter engines New E-Four

New 6-Speed MT 35 New 6-Speed MT

New 6-Speed MT 36 Mass (kg) 50 45 40 35 30 47 Conventional MT Mass Total Length New 6-Speed MT 7 kg lighter 40 New 6- speed MT Total length (mm) 400 380 360 340 320 396 Conventional MT 24 mm shorter 372 New 6- speed MT By making the transmission lighter and more compact, transmission efficiency at the world s highest levels is achieved Transmission efficiency (%) Transmission Efficiency 5.0 5.5 6.0 6.5 7.0 Gear ratio width (1st/6th) Toyota CVT Competitor MT 7.5 (company estimate)

New 6-Speed MT imt Control: intelligent Manual Transmission When Upshifting When Downshifting 37 R 1 3 5 R 1 3 5 2 4 6 Clutch Pedal 2 4 6 Clutch Pedal imt imt 新制御 (imt-step2) を採用することで MT 操作を制御でサポートし ドライバーの負担を更に軽減 according to the engine RPM Smooth gear shifting operation is automatically supported

New Hybrid System 38 New THS II (2.0-liter)

New Hybrid System 39 Vehicle CO2 (g/km) Company B 2.5L Diesel New THS II Target (2.0liter) Company C Company C 1.6L T 2.2L Diesel 7DCT Company A 1.4T Company B 2.0L 6AT Company B 1.8L Diesel Company A 1.6L Diesel 5.0 10.0 0-100km/h(sec) (company estimate) A hybrid system that emphasizes driving

Linear and Lengthened Acceleration Sensation 40 Engine RPM Reduce initial engine rotation and increase rotation linearly Conventional control New control Battery power supplements acceleration Improved Acceleration Sensation New control Conventional control Battery power Engine rotation is increased linearly to produce lengthened and comfortable acceleration

Lineup of New Powertrain Models to Meet Diverse Needs 41 THSⅡ (1.8-liter) THSⅡ (2.0-liter) THSⅡ (2.5-liter) Multi-stage THSⅡ 6MT Direct Shift-CVT Direct Shift-8AT Engines: 9 models, 17 variations Transmissions: 4 models, 10 variations HV systems: 6 models,10 variations Direct Shift-10AT 3.5-liter twin-turbo Dynamic Force Engine (2.5-liter) Dynamic Force Engine (2.0-liter) (Variations consist of front-wheel drive or rear-wheel drive, passenger or commercial vehicle, conventional or HEV, differences in torque capacity, etc.) With the introduction a new 2.0-liter powertrain, Toyota is announcing a total of 11 models among a total of 19 models

Deployment of the New 2.0-liter Powertrain 42 To be produced locally in Japan, China, North America, South America, and Europe in stages for prompt global deployment

Deployment of TNGA-based Powertrains Developed 43 Share of sales 100% 80% 60% 40% 20% 0% Other TNGA '15 '16 '17 '18 '19 '20 '21 '22 '23 Average New Vehicle CO2 Emissions Reduction Rate (with new powertrain) 20% 15% 10% 5% 0% '15 '16 '17 '18 '19 '20 '21 '22 '23 Vehicles equipped with the new powertrains are expected to increase to about 80% by 2023 (Japan, U.S., Europe, and China) Contribution of the powertrain alone to the average reduction of new vehicle CO2 emissions is expected to be at least 18% (compared to 2015)

Contents 44 New Powertrains Based on TNGA 1. Toyota s Initiatives 2. New Powertrain Units 1) New 2.0-liter Powertrain 2) New 4WD System

4WD Market Trends 45 Global 4WD Production Volumes Million vehicles 25 Toyota s Share 20 Toyota 15 10 5 0 2015 2016 2017 2018 2019 2020 2025 (company estimate) The 4WD market is expected to grow even further and the need for further improvements in product performance will increase

4WD Performance Sought by Toyota (4WD Passenger Vehicles) 46 Conventional engine-powered vehicle HEV Company C Company A Loss Conventional Company B Loss Conventional New Company D New 4WD Performance 4WD Performance (company estimate) Achieve both better driving performance and better environmental performance

Driving Performance of the New 4WD System 47 On-Road Cornering Performance Off-Road Driving Performance on Rough Roads The new system achieves improved basic performance both in on- and off-road situations and exceptional driving performance

New 4WD System (Conventional Engine Vehicle) Conventional Electronic Control 4WD World s First Dynamic Torque Vectoring AWD +AWD Integrated Management(AIM) 48 Torque Vectoring Mechanism Disconnect Mechanism Independent left & right control Fuel Economy Loss Rotation stops during 2WD 80% lower Toyota developed a new 4WD system that combines new automatic and independent control of left and right rear torque with an automatic 2WD switching function

New 4WD System (HEV) 49 Conventional E-Four New E-Four +AWD Integrated Management (AIM) Optimal control of power distribution to the front and rear wheels Rear output torque is boosted Approx. 1.3 times Rear Wheel Torque Toyota developed the new E-Four, which greatly increases rear output torque and automatically controls optimal power distribution to the front and rear wheels

New 4WD System Lineup 50 Dynamic Torque Vectoring AWD New E-Four New 4WD System: 8 Models We will deploy eight models of the new 4WD system for various applications including passenger vehicles, commercial vehicles, and HEVs

Deployment of the New 4WD Series 51 Expected Sales Ratios of New and Conventional 4WD System (%) 2017 2018 2019 2020 2021 2022 2023 Conventional 4WD New 4WD The new series will be expanded to 28 models, about 70% of total new 4WD system sales in 2023

For Our Customers Smiles 52 For meeting diverse regional needs and for our customers smiles

53