Toyota Sets 400+ HP Target for New Four-Cylinder Engine

This mid-engine GR Yaris also has a new four-wheel-drive system.

GR Yaris M concept

Photo by: Toyota

Adrian Padeanu

By: Adrian Padeanu

Oct 28, 2025 at 4:39am ET

Add Motor1.com as a preferred source in Google

Comment

All eyes were on Toyota at the beginning of the year when it unveiled a mid-engine GR Yaris at the Tokyo Auto Salon. As if that wasn’t intriguing enough, the hot hatch ditched the familiar 1.6-liter three-cylinder it shares with the GR Corolla in favor of a larger four-cylinder 2.0-liter engine. The plan was to test the pocket rocket in endurance racing a few months ago, but its track debut was postponed after encountering “difficulties” during development.

Fast-forward to October: the “G20E” is still a work in progress, but Toyota has now successfully tested the new engine in competition. None other than company chairman Akio Toyoda finished third overall, piloting the mid-engine GR Yaris during the sixth round of the Super Taikyu Series at Okayama Circuit.

Following earlier reports from Japan, Toyota now confirms it’s targeting more than 400 horsepower. The engine ran entirely on gasoline during the race, but it's being developed to support a 20-percent ethanol blend (E20). According to Japan's Car Watch magazine, the G20E is derived from the “G16E” used in the GR Yaris, GR Corolla, and Lexus LBX Morizo RR crossover.

After the race, Akio Toyoda wouldn’t commit to a launch date but said Toyota has “definitely taken a step forward.” The development team echoed his optimism, noting they encountered no major issues during the three-hour race. Once ready, the G20E could power a wide range of vehicles, as it can be mounted longitudinally or transversely in front- and mid-engine layouts.

Photo by: Toyota

The 2.0-liter turbo engine was first announced in May 2024 as part of a new family of smaller, more efficient powertrains. A report from The Financial Times claims Toyota plans to launch the first vehicles with these engines in late 2026. Beyond the G20E, there will be 1.5-liter naturally aspirated and turbocharged variants, all reduced in volume, height, and weight.

Toyota says the new engines will “revolutionize vehicle packaging” and improve aerodynamics. Future models will feature lower hoods for better airflow and efficiency, made possible by reducing engine height. The 2.0-liter turbo was even tested in a Lexus IS prototype, where it was mounted further back to lower the sedan’s center of gravity.

Toyota GR Yaris M Concept

Source: Toyota

What do you think?

View

Comments

Beyond engines, the GR Yaris M also debuted a new four-wheel-drive system with adjustable power splits: 40:60 or 50:50 front/rear. For comparison, the existing setup can send up to 60 percent of torque to the front wheels or 70 percent to the rear.

Toyota continues to drop hints about committing to fun cars. Besides suggesting the Celica will return, the company has pledged to revive the Supra shortly after the current BMW Z4-based model ends production in March 2026. Above them all will sit a road-going GT3-derived supercar, scheduled to debut in early December.

Toyota Makes ICE Fun:

Toyota Wants to Use Its New Gas Engines for Everything

Toyota Built a Mid-Engine Hot Hatch

Stay informed with our newsletter every weekday

back

Subscribe For more info, read our Privacy Policy & Terms of Use.

We want your opinion!

What would you like to see on Motor1.com?

Take our 3 minute survey.

- The Motor1.com Team

Share this Story

GO TO COMMENTS

(

)

Got a tip for us? Email: tips@motor1.com

View all comments ( )

Popular

The Corvette Spent 70 Years Building Its Legacy. There's No Reason To Dilute It Now

Scout Has 212,000 Reservations. Here's What Those Drivers Own

Subaru Wants To Save The Gas Engine With A More Efficient Boxer

Honda Secretly Showed Dealers Its Future Models, Including The Element. Here's What They Said

Scout Is Finally Building Real Vehicles At Its $2-Billion Factory