Toyota has confirmed it’s actively working on a mid-engined sports car, but says it’s still a ways off.
Gazoo Racing president Tomoya Takahashi said the performance division was working with Toyota to develop a model with a mid-mounted version of its forthcoming 2.0-litre turbocharged four-cylinder performance engine, but stopped short of naming it the MR2.
Between 1984 and 2007, Toyota produced three generations of the MR2, with the transverse engine sitting ahead of the rear axle and driving the rear wheels.
However, unlike earlier MR2 models, the next one appears as if it will have all-wheel drive.
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“The [mid-engined] layout was our way of making cars that are fun for customers to drive. As for why we went with four-wheel drive for the [development car], you can trace that back to the MR2,” Mr Takahashi told company magazine Toyota Times.
“The MR2 likewise had an incredibly well-balanced weight distribution between the front and rear, but it was prone to spinning. What made the car turn so well also led it to spin out easily on corners.
“By turning that layout into four-wheel drive, you transform the power that causes the vehicle to spin into a force that pulls the car forward, improving stability through corners. That’s why we took on the challenge of a [mid-engined] four-wheel drive, aiming for faster, more stable cornering,” he explained.
Weeks after fresh trademarks for the Toyota MR2 were unearthed, the automaker teased the car community by announcing it would be unveiling a mid-engined vehicle at the Tokyo Auto Salon in early January 2026 – an exhibition famous for its Japanese performance cars.
But instead of a new-generation MR2, as many had speculated, Toyota and its subsidiary Daihatsu unveiled two ‘kei trucks’ – compact cab-over tray-back four-wheel-drive trucks – which had been highly modified for off-roading. Attendees were invited to vote on which one they liked best.
While their 0.66-litre engines are technically mid-mounted, many believed the event to be a prank perpetrated by Toyota on the global car community – with Chairman Akio Toyoda known for having a strong sense of humour.
However, there was something else at the Tokyo Auto Salon that provided an early look at the fourth-generation MR2.
Toyota’s performance arm, Gazoo Racing, showed off a GR Yaris development car called the M Concept, fitted with a mid-mounted 2.0-litre turbocharged engine.
“We developed it to fit in a small car like the GR Yaris because the packaging and engineering is more demanding,” Mr Takahashi told Automotive News.
“If we can do that, we can easily deploy it in bigger vehicles.”
Revealing that Mr Toyoda was “determined to continue manufacturing internal-combustion engines,” the Gazoo Racing boss suggested the addition of hybrid technology was practically a given in the current regulatory environment.
“If we are going to mount this engine on many different vehicles, it’s almost mandatory to be able to combine it with hybrid technology,” Mr Takahashi said.
“We will be making such [a] development.”
While an exact date for the reveal of the all-new Toyota MR2 remains unknown, the company said it will continue developing the mid-engined GR Yaris M Concept development car throughout 2026.