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It's Official: Toyota Has A New Mid-Engine Car In The Works

However, we're in for a long wait.

Toyota MR2

Photo by: Toyota

Adrian Padeanu Adrian Padeanu

By: Adrian Padeanu

Jan 22, at 2:47am ET

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The Breakdown

Toyota’s mid-engine tease for the 2026 Tokyo Auto Salon turned out to be nothing more than a souped-up Daihatsu Hijet kei truck. However, good things come to those who wait, as a new sports car with the engine behind the seats is indeed coming. After countless rumors and years of passionate speculation, we finally have official confirmation that something along the lines of an MR2 is on the way.

Gazoo Racing was recently spun off into a separate sub-brand dedicated to performance vehicles, and now the company’s president says a mid-engine model is in the works. Tomoya Takahashi broke the news in an interview with Automotive News, though we’re in for a long wait. He explained that while prototype testing has already begun, series production isn’t happening anytime soon.

The unnamed model is currently in the first of four development stages before customer vehicles hit the assembly line. Takahashi said it’s going to take four, if not five, years for the project to materialize into a production car. In other words, the best-case scenario would see Toyota, well, Gazoo Racing, launch the car around 2030.

Toyota G20E engine

Toyota G20E engine

Toyota Is Developing A Powerful Four-Cylinder Engine

Beyond confirming a new mid-engine performance vehicle and its timeline, GR’s president also revealed the engine: the G20E. It’s an entirely new development, a turbocharged 2.0-liter gasoline unit first tested in the GR Yaris M concept. We previously learned that engineers are targeting more than 400 horsepower. In race-car form, an uncorked version of the four-cylinder could exceed 600 hp.

Takahashi believes the 300 hp produced by the smaller 1.6-liter three-cylinder used in the GR Yaris, GR Corolla, and Lexus LBX Morizo RR isn’t sufficient for a midship layout. While he didn’t specify which model would receive the new engine, it’s reasonable to assume a new MR2 is a prime candidate for the G20E.

The new engine will deliver significantly more power than the existing 2.4-liter turbo while having a 10-percent smaller footprint and lower height. Toyota has also claimed it will be up to 30 percent more efficient, though that figure may apply only to a hybrid configuration. Takahashi confirmed the new 2.0-liter unit will be electrified and compatible with front-engine applications as well.

Toyota GR Yaris M Concept

Toyota GR Yaris M Concept

6

Toyota GR Yaris M Concept GR Yaris M concept GR Yaris M concept Toyota GR Yaris M Concept GR Yaris M concept

Source: Toyota

New MR2 And Celica?

Toyota stopped building mid-engine cars in 2007 when production of the third-generation MR2 ended. Reviving the layout in a successor to the beloved roadster makes far more sense than shoehorning it into a hot hatch like the GR Yaris. The latter is currently being used for testing, but we don’t see a case for a production version.

Before the MR2 arrives, Toyota could launch another sports car. Celica test mules are already on the road, according to Cooper Ericksen, VP of product planning for North America. The front-engine model is in “pretty advanced development,” and dealers have already seen prototypes and design sketches. Since the public hasn’t seen anything yet, a production debut before 2028 seems unlikely.


Motor1's Take: At long last**,** we finally have confirmation that Toyota is developing a new mid-engine car. It’s taking longer than we’d like, but at least it’s happening. The G20E could also power other exciting models, as Takahashi noted, it’s being developed for larger vehicles and all-wheel-drive applications.

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If Toyota delivers on its promises, the Gazoo Racing lineup could be nothing short of spectacular in a few years. Beyond the existing GR Yaris, GR Corolla, GR86, and GR GT, enthusiasts could also see a GR Celica and a GR MR2. On top of that, we've been promised the GR Supra would return one day.

Whether it’s feasible to sell so many low-volume sports cars at once remains to be seen, but Toyota appears determined to keep affordable performance alive.

Fun Times Ahead:

Toyota Will Build Fun Cars With Gas Engines Until ICE Is Banned

New Toyota Boss Hints More GR Sports Cars Are Coming

Source: Automotive News

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