Toyota Prepares Return of Legendary Celica: AWD, 2.0-Liter Turbo and Hybrid

More than two decades after the seventh generation ended production, Toyota is preparing to bring the iconic sports coupe Celica back to the market. The new model will feature all-wheel drive, a brand-new 2.0-liter turbocharged hybrid powertrain, and will serve as a relatively affordable entry point into the expanding lineup of the GAZOO Racing performance division.

Official Confirmation and the Celica Sport Project

Development has already moved from rumor to reality: Toyota Executive Vice President Yuki Nakajima has directly confirmed that the company is working on reviving the model.

According to British publication Autocar, the project is known internally as Celica Sport. Like all its predecessors, the sports car will retain a classic front-engine layout, and its technical basis will likely be the next-generation scalable modular architecture of the Toyota Corolla, whose concept debuted at the Japan Mobility Show.

New-Generation G20E Engine and Hybrid Technologies

The main powerplant for the revived coupe will be an all-new four-cylinder engine, the 2.0 Turbo (G20E family). Engineers are already testing this compact internal combustion engine on the mid-engine GR Yaris M Concept prototype.

Key features of the powertrain:

• Compact architecture: The engine was designed from the start to work with electric drive, taking up less space under the hood to optimize the center of gravity and aerodynamics.
• Hybrid options: Toyota is considering both a traditional self-charging hybrid (HEV) and a plug-in version (PHEV) with an all-electric range.
• Output potential: Depending on the level of tuning, the G20E can produce from 400 hp in road versions to over 600 hp in racing specifications.

At the same time, the Celica is positioned as a mass-market sports car, so base versions will get a more restrained power calibration to avoid internal competition with the brand’s higher-end supercars.

All-Wheel Drive and the Rally Spirit of the GT-Four

The car will feature an all-wheel-drive system for both road and motorsport use. The AWD layout is a direct nod to the legendary homologation versions of the Celica GT-Four, which brought the Japanese automaker World Rally Championship titles in 1993 and 1994.

In parallel, Toyota is already testing a two-door sports body for the 2027 WRC regulations, which will link the new production model to its motorsport program.

The “Three Brothers” Strategy: Supra, Celica, and MR2

The return of the Celica fulfills a long-standing goal of Chairman Akio Toyoda: to bring together the iconic trio of sports models from the 1990s.

1. Supra: Already successfully relaunched in partnership with BMW.
2. Celica: Will become a front-engine, all-wheel-drive hybrid coupe.
3. MR2: A new-generation mid-engine compact sports car, expected to debut on the G20E platform closer to 2028.

According to Toyota corporate releases, development of high-efficiency internal combustion engines is being carried out in partnership with Mazda and Subaru as part of a carbon-neutral strategy. The company will announce official dates for the production Celica’s unveiling and the start of manufacturing later.