Toyota is signaling a bold return to its performance roots, reviving two beloved models from its 1990s heyday, the Celica and MR2, alongside a new Lexus sports car, all slated for release by 2026. This move comes as a refreshing counterpoint to the prevailing electric vehicle trend, showcasing Toyota’s commitment to traditional internal combustion performance.
A key component of this revival is the newly unveiled G20E engine, showcased at the 2025 Tokyo Auto Salon. This 2.0-liter powerplant, developed in-house by Toyota, promises a substantial 400 horsepower in its standard configuration, with a more potent 600 horsepower variant earmarked for high-performance models.

While the G20E was demonstrated in a modified GR Yaris at the Tokyo Auto Salon, positioned behind the rear seats, Toyota clarified that this was merely a demonstration. The engine’s intended placement in the Celica suggests a more conventional front-engine layout. Furthermore, the Celica is expected to feature a four-wheel-drive system, potentially reviving the iconic GT-Four nameplate and signaling Toyota’s intention to re-enter the World Rally Championship arena.
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In addition to the Celica and MR2, Toyota is also developing a successor to the Lexus LFA, tentatively named the LFR. Prototypes of this new Lexus sports car have been spotted undergoing rigorous testing at renowned tracks like Spa-Francorchamps and the Nürburgring Nordschleife, indicating a focus on track-ready performance. The production version of the Lexus LFR is anticipated to house a turbocharged V8 engine, delivering between 500 and 600 horsepower.
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