Toyota's Mid-Engine Sports Car Project Progresses, MR2 Revival Possible
Cars

Toyota's Mid-Engine Sports Car Project Progresses, MR2 Revival Possible

authorBy Dan Neil
DateMar 30, 2026
Read Time3 min

Toyota is actively developing a mid-engine sports car, with the GR Yaris M concept serving as a crucial testbed. While the Yaris itself may not evolve into a production mid-engine vehicle, the innovations and knowledge gained are being channeled into a potential new sports car. This highly anticipated model could mark the return of the beloved MR2 nameplate, joining other classic revivals like the Celica Sport in Toyota's performance-focused lineup. The new vehicles are expected to boast powerful turbocharged 2.0-liter engines, exceeding 400 horsepower and featuring all-wheel-drive systems, signaling an exciting era for enthusiasts.

Toyota initially unveiled the GR Yaris M concept over a year ago, catching many by surprise. Despite its hot hatch appearance, it's widely understood that this Yaris derivative is primarily a development platform. Engineers have been rigorously testing the concept on Japanese racetracks, refining its mid-engine architecture and powertrain. This rigorous development process aims to translate motorsport insights into a production-ready vehicle that embodies Toyota's commitment to driving exhilaration.

Mikio Hayashi, Gazoo Racing's marketing manager, recently indicated that the GR Yaris M project is progressing positively, hinting at a forthcoming production model that will utilize the concept's engine technology. When pressed about the resurgence of the MR2 moniker, last seen almost two decades ago, Hayashi's cryptic response fueled further speculation, suggesting that a return is indeed a strong possibility. This signals Toyota's strategic move to re-establish itself as a leading innovator in the sports car segment.

Beyond the potential MR2 revival, Toyota is also rumored to be bringing back the Celica, possibly under the name Celica Sport. Both the new MR2 and Celica Sport are anticipated to share a high-performance turbocharged 2.0-liter gasoline engine. Company officials have hinted at outputs exceeding 400 horsepower and the inclusion of all-wheel-drive, suggesting a formidable presence in the sports car market. These models, under the Gazoo Racing (GR) banner, are part of Toyota's broader strategy to expand its performance offerings.

The new mid-engine sports car would proudly bear the Gazoo Racing badge, positioning GR as a distinct performance brand. It is expected to sit strategically in the lineup, possibly above the Celica Sport and below the V8-powered GR GT. With rumors also circulating about the eventual return of the Supra, Toyota is poised to become a champion for sports car enthusiasts among major automotive manufacturers, offering a diverse range of high-performance vehicles.

While the future of current GR models like the GR Yaris, GR Corolla, and GR86 remains uncertain, Toyota's focus on high-volume production for the hatchbacks and potential collaborations, such as with Subaru for the GR86 and possibly Mazda for the next Miata, indicate a dynamic strategy. These developments highlight Toyota's ambition to maintain a strong presence in the performance segment while continuously evaluating its product portfolio. The journey towards a new MR2, though not immediate, signifies an exciting chapter for Toyota's performance division.

Toyota's dedication to sports car innovation is clearly evident through the ongoing development of the GR Yaris M concept, paving the way for potential revivals like the MR2 and Celica Sport. These upcoming models, under the Gazoo Racing brand, promise advanced turbocharged engines, impressive horsepower, and all-wheel-drive capabilities, reinforcing Toyota's commitment to delivering exhilarating driving experiences and cementing its position as a leader in performance vehicle manufacturing.

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