Three major Japanese automakers Toyota Motor, Mazda Motor and Subaru have held a presentation to unveil the next-generation eco-friendly engines they are developing.

The joint event on Tuesday was aimed at highlighting the commitment of the three automakers to electrification and carbon neutrality in engine development.

President and CEO, Toyota Motor Sato Koji said: " Each company is working on EV battery development, but the engine is also an integral technology to the multi-pathway approach to carbon neutrality. We will all develop the best engines for the era of electrification."

Toyota said it is developing a smaller but more fuel-efficient engine to be mounted on its plug-in hybrid vehicles and other electrified models.

Mazda set out plans to make use of its iconic rotary engine technology to develop engines that can burn a wide range of fuels, including biofuel.

Subaru said it will develop more fuel-efficient vehicles by combining a flat, or "horizontally opposed engine," which generates less vibration with an electric unit.