Toyota’s Gazoo Racing division has intensified speculation surrounding a potential mid-engined Celica revival after recent prototype activity in Japan and Europe.
A camouflaged GR rally prototype observed testing in Portugal last week has revived discussion of a Celica return to the World Rally Championship.
Around the same time, Toyota conducted a public demonstration of its mid-engined Toyota GR Yaris M Concept in Japan. According to reports, an individual connected to the project “didn’t deny” the circulating Celica rumors.
While that statement stops short of confirmation, it has further amplified expectations that Gazoo Racing is preparing a significant new performance model.
The GR Yaris M Concept first appeared in January 2025 featuring a mid-mounted turbocharged 2.0-liter engine paired with all-wheel drive.
Although development reportedly encountered setbacks, the program is said to have resumed momentum.
Many observers interpret the concept as an early indicator of a future mid-engined production sports car, potentially reviving either the Celica coupe or the MR2 roadster.
At the opening round of the All Japan Rally at Mikawa Bay, Toyota introduced a revised GR Yaris M prototype.
This example was piloted by Morizo and Takamoto Katsuta and utilized a smaller turbocharged 1.6-liter engine. The configuration suggests the vehicle may represent an interim development mule rather than a finalized iteration.
Compared to the black hatchback competing in Japan’s Super Taikyu Series, the white rally-spec prototype appeared more suited for stage competition than circuit work.
It rode on smaller alloy wheels prepared for gravel surfaces and incorporated provisional side air intakes along with a new roof scoop.
Notably absent were the extended fenders, vented hood, and oversized rear wing seen on earlier versions, reinforcing the impression that this remains a work in progress.
A source close to the effort offered no definitive clarification but “didn’t deny that the test car wasn’t a Celica.” The ambiguity has done little to dampen speculation.
Toyota has already confirmed that the Toyota Celica will return to production under the Gazoo Racing banner. Separately, the company has acknowledged development of a mid-engined sports car widely believed to signal the revival of the Toyota MR2.
Historically, every Celica generation has employed a front-engine layout. However, Best Car suggests the upcoming version could adopt a mid-engine configuration.
Toyota has not provided formal confirmation regarding drivetrain placement. Should a GR Celica materialize, the most probable powerplant remains the new turbocharged 2.0-liter engine currently under development.
Attention has also shifted to Toyota’s next World Rally Championship challenger, reportedly targeted for the 2027 season.
A GR-branded rally prototype recently undergoing evaluation in Portugal displayed a two-door coupe profile rather than the hatchback form of the Toyota GR Yaris. The silhouette divergence suggests that Toyota may be positioning the Celica nameplate for its future WRC campaign.
Current indications are that the rally car will utilize GR Yaris Rally2 underpinnings, maintaining a front-engine layout.
In accordance with WRC regulations, it is expected to run a turbocharged 1.6-liter engine driving all four wheels through a standardized five-speed gearbox. The structure will reportedly employ a spaceframe chassis while retaining Rally2-based steering and braking systems.
Speculative renderings based on spy photography envision a rally-prepared GR Celica with aggressive aero elements and compact coupe proportions.
The eventual production model, however, is likely to evolve significantly from these early prototypes. Final proportions and drivetrain architecture will depend on Toyota’s ultimate engineering direction.
For now, Toyota’s refusal to categorically dismiss the mid-engined Celica narrative ensures that anticipation remains elevated across both enthusiast and motorsport communities.
