Toyota has confirmed that it is actively working on a mid-engined sports car, but says this is still a long way off.
Tomoya Takahashi, president of Gazoo Racing, said the performance division is working with Toyota to develop a model with a mid-range version of the upcoming 2.0-liter turbocharged four-cylinder engine, but did not give it a name MR2.
Between 1984 and 2007, Toyota produced three generations of the MR2, with the transverse engine sitting in front of the rear axle and driving the rear wheels.
However, unlike previous MR2 models, the next model appears to have all-wheel drive.
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“The (mid-engine) layout was our way of building cars that customers would enjoy. As for the reason why we went with all-wheel drive on the (development car), it can be traced back to the MR2,” Takahashi told the company publication Toyota Times.
“The MR2 also had an incredibly balanced weight distribution between the front and rear wheels, but was prone to spinning. What made the car turn so well also meant it was prone to spinning in corners.”
“By converting this arrangement to all-wheel drive, you convert the force that causes the vehicle to skid into force that pulls the car forward, improving stability in corners. That’s why we took on the challenge of a (mid-engine) all-wheel drive and aimed for faster and more stable cornering,” he explained.
Weeks after new trademarks were discovered for the Toyota MR2, the automaker teased the auto community by announcing that it would unveil a mid-engine vehicle at the Tokyo Auto Salon – an exhibition known for its Japanese performance cars – in early January 2026.
But instead of a new-generation MR2, as many had speculated, Toyota and its subsidiary Daihatsu introduced two “kei trucks” – compact four-wheel drive trucks with front control and a tub rear that were heavily modified for off-road use. Participants were invited to vote on which one they liked best.
Although the 0.66 liter engines are technically mid-engine, many believed the event was a prank by Toyota on the global car community – with chairman Akio Toyoda known for his keen sense of humor.
However, there was something else at the Tokyo Auto Salon that offered a first look at the fourth-generation MR2.
Toyota’s performance division, Gazoo Racing, unveiled a GR Yaris development car called the M Concept, equipped with a 2.0-liter turbocharged mid-engine.
“We designed it to fit in a small car like the GR Yaris because packaging and engineering are more sophisticated,” Takahashi said Automotive News.
“If we can do that, we can easily use it in larger vehicles.”
Gazoo Racing’s boss revealed that Mr Toyoda was “determined to continue producing internal combustion engines” and suggested that the introduction of hybrid technology was practically a given in the current regulatory environment.
“If we want to install this engine in many different vehicles, it is almost mandatory to be able to combine it with hybrid technology,” Takahashi said.
“We will carry out such a development.”
While an exact date for the unveiling of the all-new Toyota MR2 is still unknown, the company revealed that it will continue development of the mid-engine GR Yaris M Concept development car throughout 2026.
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