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Aiming to relaunch its Celica and MR2, the iconic car models from the 1990s, Toyota has reportedly started developing them, including its Lexus Sports car. This development came into the news when the demand for electric cars soared; this critical step from the Japanese automakers has surely gained appreciation globally. Toyota aims to launch new generation Celica, MR2, and Lexus Sports cars by 2026, positioning these models under Toyota’s performance car lineup.
Toyota unveiled its G20E engine at the 2025 Tokyo Auto Salon. Ths 2.0-liter engine from Toyota churns out 400 horsepower while up to 600 hp of power output in sports cars.
The G20E engine was introduced as the fitment for the Toyota GT Yaris, which is configured behind the rear seats. However, the brand highlighted that the GR Yaris mule was just for display, indicating the upcoming Toyota Celica can feature this powertrain under the hood. The Celica is also likely to get a four-wheel drive system. According to reports, Toyota Celical will compete against its rivals in the World Rally Championship, with possibly a GT-Four nameplate.
The Japanese automaker also aims to unveil a luxury sports car by next year to replace its Lexus LSR, which could be the Lexus LFR. The prototype version of Lexus LFR was reportedly spotted at the Spa-Francorchamps and Nurburgring Nordschleife. Toyota also has plans to launch a road-going version of this sports car. The upcoming Lexus LFR can get a turbocharged V8 engine that delivers 500 to 600 hp.
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