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During next decade, automotive engineers will take up unprecedented challenges to meet a variety of technical demands on passenger cars. While performance, refinement and reliability will continue to be major technical goals of passenger cars, reducing their impact on the environment not only in urban areas but also on the global basis will become an increasingly urgent issue. In addition, the need for energy and resources saving will necessitate development of more fuel efficient cars, exploitation of alternative energy and recycled materials. In this paper, the authors will review various alternative engines as candidates to satisfy the above demands. The authors will also discuss various alternative transportation energy sources such as alcoholic fuels, natural gas, hydrogen and electricity. Finally the trends of future passenger car engine design will be discussed.