The news was shared by GR president Tomoya Takahashi, who stated that the project is underway but won’t reach production for another four to five years. Prototype testing has already begun, with the production version expected around 2030.
This official confirmation follows years of speculation and rumors about a potential revival of the MR2 or a similar mid-engine model. Although Toyota teased fans at the 2026 Tokyo Auto Salon with a modified Daihatsu Hijet kei truck, Takahashi has now clarified that a genuine mid-engine vehicle is on the way. The announcement represents a significant step for Gazoo Racing, which recently became an independent sub-brand focused solely on performance cars.
The confirmation also highlights Toyota’s long-term commitment to performance engineering, even as the industry leans increasingly toward electrification and utility-focused models. This future sports car marks the brand’s first return to a mid-engine layout since the third-generation MR2 ended production in 2007.
Four Development Stages Before Production
According to Takahashi, the new mid-engine car is currently in the first of four major development stages. Although early prototype testing is already underway, series production remains several years away. “It’s going to take four, if not five, years for the project to materialize into a production car,” he said in an interview with Automotive News.
There is no official model name yet, and Takahashi did not reveal whether it will carry the MR2 badge. The development is being overseen by Gazoo Racing, reflecting the sub-brand’s expanded role following its official spin-off from the main Toyota organization.
Toyota’s New G20E Engine Breaks Cover
Takahashi also unveiled the engine that will power the future model: the G20E, a newly developed 2.0-liter turbocharged gasoline engine. The engine was first tested in the GR Yaris M Concept and is designed specifically for higher-output applications. Engineers are aiming for more than 400 horsepower, with race versions potentially exceeding 600 hp.
The G20E is being developed to outperform Toyota’s current 1.6-liter three-cylinder unit, which powers the GR Yaris, GR Corolla, and Lexus LBX Morizo RR. Takahashi explained that the output of the 1.6-liter is not sufficient for a mid-engine platform, making the new engine a necessary advancement.
Beyond power, the G20E is also more compact than existing options. It features a 10 percent smaller footprint and lower height than the 2.4-liter turbo unit, making it easier to integrate into a midship design. Toyota also claims the engine could be up to 30 percent more efficient, though this likely refers to hybrid configurations. Takahashi confirmed that the G20E will be electrified and compatible with front-engine applications as well.
MR2 Heritage and Possible Celica Comeback
While the mid-engine sports car is still years away, Toyota may release another performance vehicle beforehand. Cooper Ericksen, Toyota’s vice president of product planning for North America, revealed that Celica test mules are already in development. He described the front-engine model as being in “pretty advanced development,” with prototypes and design sketches already shown to dealers.
Despite this progress, the public has yet to see anything concrete from the project, making a launch before 2028 unlikely. Still, the appearance of the Celica name suggests Toyota’s performance lineup could expand significantly in the coming years.
The G20E engine is also being developed with larger vehicles and all-wheel-drive applications in mind, according to Motor1.com. This could pave the way for more GR-branded models beyond the existing GR Yaris, GR Corolla, GR86, and GR Supra.
