The fifth-generation Toyota Supra is heading toward retirement before the end of this year, but Toyota isn't walking away from sports cars. The automaker is in fact preparing to revive another name from its storied past: the Celica. A Toyota executive confirmed the Celica's development at a Japan-based event in late 2024, and a new report from Autocar now fills in more detail about the car's name and powertrain plans.
Autocar sat down with Gazoo Racing marketing manager Mikio Hayashi, who disclosed that the new car will carry the name Celica Sport. He also confirmed that all-wheel drive will be part of the package — an unsurprising detail given the nameplate's extensive rally racing heritage, though earlier generations were also sold with front-wheel drive, and the original Celicas were rear-wheel drive.
The rally connection is apparently continuing into this new generation. A prototype Toyota rally car was photographed testing in Portugal in February. Since the current Yaris-based WRC competitor will be ineligible for the World Rally Championship starting in 2027, and the camouflaged test car appeared to be a compact coupe, the Celica seems like the logical successor as Toyota's next WRC entry.
Hayashi also added his voice to earlier reports suggesting the Celica Sport will use a hybrid turbocharged 2.0-liter four-cylinder. Toyota previewed a new turbo-four engine, coded G20E, at the 2025 Tokyo Auto Salon, installing it in the mid-engine GR Yaris M concept. That same engine is expected to appear in the upcoming Celica and MR2 revivals.
"The displacement size of 1.6 liters [used in the GR Yaris], for example, cannot meet emission regulations. So we have to consider the possibility of a 2.0-liter," Hayashi told Autocar. "We are thinking about various sizes, but we are not at a stage where we can tell you exactly what size it is. Nothing has been decided yet about whether it will be a standard hybrid or plug-in hybrid."
On the question of timing, Hayashi was equally guarded. "We are continuing to develop that. We have high expectations," he said. "We cannot point to a timeline but can say we are making steady progress."
Autocar notes that the new engine uses a shorter piston stroke compared with Toyota's existing powerplants, reducing both its size and mass. This compact, lighter unit means integrating a battery and electric motor for hybrid duty would add relatively little weight versus the current GR lineup. Projected output for the Celica hasn't been confirmed, but earlier reports have suggested around 400 horsepower. German publication Auto Motor und Sport has claimed a larger turbocharger could push the hybrid output above 600 horsepower.
The powertrain isn't expected to stay exclusive to the Celica — some version of this engine is anticipated for the GR Yaris in European markets, while the GR Corolla is considered the most likely recipient for the U.S. market. Additional details about both the engine and the next-generation Celica Sport should continue to emerge throughout this year.