Toyota has confirmed that a new mid-engine sports car is in the early stages of development.
The model will use a 2.0-liter turbocharged engine, though production is still several years away. It is intended to deliver mid-engine performance and exclusivity under the Gazoo Racing banner.
Speculation about Toyota reviving a mid-engine sports car has been circulating for some time, especially after the automaker trademarked the GR MR2 name last year. That move sparked plenty of excitement, but there was little official confirmation, until now.
Toyota Gazoo Racing president Tomoya Takahashi has finally confirmed that a new mid-engine sports car is indeed in the works. The announcement comes roughly two decades after the MR2 disappeared from the U.S. market, although enthusiasts will still need patience before the new model reaches production.
Takahashi explained that series production is still years away. The unnamed sports car is currently in the first of four development phases, meaning it could take as long as five years before a production-ready version emerges.
Under the hood, or rather, behind the cabin, will be a new 2.0-liter turbocharged four-cylinder engine. This powerplant was previewed in the GR Yaris M Concept revealed late last year. While it is compatible with front-engine layouts, the engine is designed to be more powerful than Toyota’s existing 2.4-liter turbo-four.
Known as the G20E, it is capable of producing more than 600 hp, though the upcoming sports car is not expected to reach that figure. Built to comply with future Euro 7 emissions standards, the engine will likely incorporate hybrid technology as well.
“If we are going to mount this engine on many different vehicles, it’s almost mandatory to be able to combine it with hybrid technology,” said Takahashi.

The original MR2 was a lightweight, compact sports car that produced just 138 hp when it ended production. If the new model follows a similar size philosophy, it won’t need extreme output to deliver strong performance.
Even so, it is expected to be significantly more powerful than its predecessor. Unlike the rear-wheel-drive MR2, the new sports car is anticipated to feature an all-wheel-drive layout.
Mid-engine sports cars remain a rare breed. Current mainstream examples include the Chevrolet Corvette C8 and the Porsche 718 Boxster and Cayman, while more exotic offerings come from brands like Ferrari and McLaren.
When it was priced under $30,000, the MR2 offered enthusiasts an affordable entry point into the mid-engine world.
That layout brings several advantages, including centralized mass that improves weight distribution, a lower center of gravity, and sharper handling and traction. It also allows for a lower, more aerodynamic front end.
The trade-off is packaging. Mid-engine cars typically sacrifice interior and cargo space, though that compromise is often acceptable in a purpose-built sports car.
Toyota’s Gazoo Racing division has now become a standalone brand, signaling the company’s intent to elevate its performance image. While accessible models like the GR Corolla have broadened its appeal, Toyota is also pushing toward more exclusive offerings.
The flagship GR GT is one such example, and the upcoming mid-engine sports car represents another step in that direction. Together, they underline Toyota’s commitment to building driver-focused vehicles even as the industry moves deeper into the electrification era.
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