Toyota Hints At ‘MR-Something’ Mid-Engine Sports Car With 2.0 Turbo And AWD

Toyota turned heads at the Tokyo Auto Salon 2025 with the unveiling of a mid-engined GR Yaris prototype. Set to make its racing debut this summer, the car is powered by Toyota’s new turbocharged 2.0-liter four-cylinder engine, codenamed G20E, in race-tuned configuration. While the prototype’s primary focus is motorsport, the mid-engined AWD layout has sparked speculation about a future production model, widely rumored to be the long-awaited MR2 successor.

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During a press conference at the Tokyo event, Toyota shared some interesting details about the prototype’s development and its potential future. The presentation, led by Yuta Tomikawa, featured Toyota Gazoo Racing president Tomoya Takahashi and a trio of Rookie Racing drivers, who collectively dove into the nitty-gritty of the GR Yaris M Concept and its newly developed engine.

A Tease For The MR2—And Maybe A Celica?

At one point during the discussion, Rookie Racing driver Hiroaki Ishiura made a telling comment: “Well, this is mid-ship, so I think it’s going to be an MR-something.” That remark led the presenter to ask, “So this is a GR Yaris, but maybe in the future, we’re going to call this a different car?” In the background, someone mentioned the Celica name, adding to the speculation.

All eyes then turned to Daisuke Toyoda, son of Akio Toyoda (aka Morizo) and a Rookie Racing driver who responded: “I don’t really know but whatever we say, it’s not related to the decision-making of the company and we’re just talking about it here”.

This comment prompted the presenter to press further, asking, “Do you think it’s possible this could become an actual production model to be launched?” Daisuke Toyoda replied, That’s our hope and we can all imagine various things at this moment – there is no official announcement yet.”

Why Did Toyota Move The Engine Towards The Back?

In a separate presentation titled “Building Better Cars Starting from Motorsports,” a different group of Toyota Gazoo Racing engineers and racing drivers provided deeper insight into the reasoning behind the layout. They also shared key details about the development of the mid-engined model, highlighting its connection to motorsport innovation.

Naohiko Saito, one of the Chief Engineers at Toyota Gazoo Racing responsible for developing the GR Yaris, admitted to being the one who came up with the idea of moving the engine towards the back.

Data from racing with a front-engined AWD setup revealed moments where the car became unresponsive to driver inputs until the wheels regained traction. This prompted Saito to approach Akio Toyoda and propose the transition to a more balanced mid-engined AWD layout that would move the center of gravity towards the rear axle.

Toyota GR Yaris M Concept

According to the chief engineer and professional drivers, the new layout eliminated the previously mentioned gap, significantly improving the model’s maneuverability and handling sharpness. Additionally, the team experimented with various torque distribution settings between the axles to achieve the ideal balance.

Early mid-engined prototypes were equipped with the 1.6-liter three-cylinder engine, which eventually led to the GR Yaris M Concept featuring the new 2.0-liter four-cylinder unit. This engine, codenamed G20E, was first announced in May 2024, but this marks its debut in a development prototype. It is believed that it will come in two configurations, producing 296 hp (221 kW) and 395 hp (294 kW), alongside an unrestricted racing variant delivering 592 hp (441 kW).

More: Toyota Drops GR Corolla’s 300 HP AWD Powertrain In A GR86 Concept

Racing driver Hiroaki Ishiura, who was part of the GR Corolla development team, remarked that the mid-engined prototype exhibited no understeer and delivered a surprisingly comfortable ride. He also noted the distinct experience of feeling the engine’s sound and vibration from the rear—something increasingly rare in modern sports cars due to stricter noise regulations. The other racing drivers on the panel echoed his sentiments, describing the prototype as an absolute thrill, adding that they cannot wait for the production model to arrive.

Yasuo Hirata, a mechanic from Toyota’s technical department, stated that the mid-engined production model is “still in the early stages of planning and development.” He added that significant work remains to be done, particularly on cooling and heat management for the powertrain.

Toyota Toyota engineers will have an opportunity to refine the formula in motorsports, as the GR Yaris M Concept is set to compete in the Super Taikyu series later in 2025. Specifically, the new race car is expected to make its debut at the Autopolis event during the fifth round on July 26-27.

MR2, Celica, and More

All these remarks align with earlier reports about the anticipated return of the Toyota MR2 as an ICE-powered, mid-engined, AWD sports car. The production model, possibly drawing inspiration from the fully electric FT-Se concept, is rumored to debut sometime in 2026.

As for the Celica, its much-anticipated return has been officially confirmed by Toyota’s executive vice president, Yuki Nakajima. While Nakajima didn’t provide a timeline for the coupe’s debut, it’s expected to appear within the next few years. Unlike the MR2, the Celica is likely to stay true to its roots with a front-engined AWD layout, powered by the same turbocharged 2.0-liter engine.

Interestingly, the MR2 and Celica won’t be the only sporty additions to Toyota’s future lineup. A subtle teaser hidden in Toyota’s anime series hints at the reborn models being joined by new generations of the GR Supra and GR 86 sports cars. Additionally, the production version of the GR GT3 concept is expected to debut, potentially serving as Toyota’s flagship supercar, though it’s more likely this will be offered under the Lexus brand.