Toyota is actively developing a new sports car, potentially reviving the iconic Celica nameplate as the “Celica Sport.” The vehicle is expected to feature all-wheel drive and a turbocharged 2.0-liter engine capable of exceeding 400 horsepower. This move signals Toyota’s commitment to expanding its Gazoo Racing (GR) performance lineup, despite increasingly strict emissions regulations.
The Next-Generation Engine
The heart of the Celica Sport will likely be Toyota’s new “G20E” engine, a four-cylinder 2.0-liter turbocharged unit. Engineers are targeting outputs of over 400 hp, with potential for over 600 hp in race-spec versions. However, for road use, a more realistic 400 hp output is anticipated.
This engine choice is strategic: Toyota has confirmed that its smaller 1.6-liter engine (found in the GR Yaris and GR Corolla) struggles to meet tightening emissions standards. As Mikio Hayashi, GR marketing manager, explained, the 1.6-liter displacement is no longer viable in many markets. The 2.0-liter provides a workaround, likely paired with some form of hybrid electrification to further reduce CO₂ emissions while maintaining high performance.
AWD and Future GR Models
The Celica Sport’s all-wheel-drive system is a key upgrade. Toyota has already tested the G20E engine in a GR Yaris prototype, but the Celica will retain a traditional front-engine layout. The new engine isn’t limited to the Celica either: it’s designed to be versatile, potentially powering future generations of the GR86, GR Yaris, and GR Corolla, as well as a new mid-engined sports car that is still four to five years from production.
The Broader Strategy
Toyota’s push into performance cars is driven by the success of its GR division. The company sees a market for both high-end flagships (like a potential V8-powered GR GT) and more accessible models. Electrification is crucial for keeping these cars compliant with European and other stringent emissions laws, where performance vehicles are facing increasing restrictions.
“Developing the new engine as part of a hybrid powertrain gives hope that Toyota’s sports cars will be sold in Europe, where stringent emissions regulations have nearly wiped out mainstream performance vehicles.”
The Celica, given Toyota’s willingness to discuss it openly, is likely to be the first GR model to arrive. A WRC-spec version could debut in the coming months, ahead of the 2027 season, offering a preview of what’s to come.
The revival of the Celica is not just about nostalgia; it’s a calculated move by Toyota to solidify its position in the performance car market, blending power, technology, and regulatory compliance.
