Toyota's New Mid-Engine Sports Car Is Getting ‘Better Every Day’

The Breakdown

• Toyota says the GR Yaris M concept will 'possibly' lead to a production car.
• The final version is unlikely to be a hot hatchback, but rather an MR2 revival.
• Power would come from Toyota's new turbocharged 2.0-liter gasoline engine.

Seemingly out of nowhere, Toyota took everyone by surprise a little over a year ago when it introduced the GR Yaris M. While it wasn’t the company’s first mid-engine hot hatch concept (there was the 2008 Aygo Crazy, and yes, that was its actual name), it arrived at a time when rumors were building about the possible return of the MR2.

Since the GR Yaris M broke cover at the Tokyo Auto Salon in January 2025, Toyota has been busy testing and developing the concept. It has appeared at race tracks in Japan several times, sparking speculation about a mid-engine sports car. It’s highly unlikely to take the shape of a hatchback, as the wild Yaris is presumably just a test bed for a different model.

In an interview with the British magazine Auto Express, Gazoo Racing marketing manager Mikio Hayashi revealed that the GR Yaris M project is progressing well. He even hinted that a production car with its engine could be on the way:

Photo by: Toyota

'[Toyota is] making this car better every day. All the knowledge and feedback gained from developing this car in motorsport will be translated into something else—a road car or mass-production model—in the future, possibly. We are continuing this path.'

When asked whether it would revive the MR2 nameplate, last used nearly 20 years ago, Hayashi’s response left room for interpretation: “Thank you for your suggestion.”

A new MR2 wouldn’t be the only Toyota sports car with a familiar name in development, as the Celica is also set to return, potentially as the Celica Sport. Both are expected to use a turbocharged 2.0-liter gasoline engine developed for high-performance applications. Based on hints from company officials, outputs of over 400 horsepower and an all-wheel-drive setup are likely for the two GR-badged models.

The new MR2 wouldn’t wear a Toyota badge, but a Gazoo Racing one, as GR is now positioned as a standalone brand. It would slot below the V8-powered GR GT and presumably above the Celica in the lineup. With the Supra also expected to return at some point, Toyota is shaping up as a savior of sports cars among mainstream brands.

Whether the GR Yaris, GR Corolla, and GR86 will all survive is unclear, as maintaining that many performance models could be overkill. Then again, the two hatchbacks would continue to be based on high-volume products, while the coupe could remain a joint effort with Subaru. If the rumors hold true, the third-generation 86 might even be co-developed with Mazda and twinned with the next Miata, although nothing is official.

Toyota GR Yaris M Concept

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Source: Toyota

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Motor1's Take: Toyota hasn’t shied away from discussing the return of the Celica and MR2, so something exciting is clearly on the horizon. The GR Yaris M may feature the “G20E” engine mounted midship, but it’s well known that the four-cylinder mill will also work in front-engine applications.

The timeline for a new MR2 remains unclear, although we do know it isn’t coming anytime soon. In January, GR President Tomoya Takahashi said we shouldn’t realistically expect a mid-engine sports car within the next four to five years. Even so, it signals a clear commitment to expanding the GR lineup.

Toyota Is Keeping Affordable Fun Alive:

Toyota Fixes GR Yaris Steering Wheel After Owners Complain

Toyota Chairman Akio Toyoda's Dream Lineup? All Hot Hatchbacks

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