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Toyota Motor Corporation aims to develop vehicles that are both fun to drive and fuel efficient, using highly reliable, low cost, and fundamental technology. This approach focuses on the accumulation of incremental improvements to combustion characteristics and friction, making the best use of the maximum potential of the displacement of a new 2.0-liter fuel-efficient diesel engine. This new engine has been launched in several markets around the world for the Avensis, the Auris, the RAV4, and the Verso since November of 2011. This paper presents an outline of this new engine and its technology.