Words: Kyle Cassidy
Published 27 March 2026
Toyota is edging closer to bringing back another sporty coupe, with fresh details emerging around a new-generation Celica that could adopt hybrid power and all-wheel drive.
Expected to be badged Celica Sport, the reborn coupe is shaping up as a significantly more advanced proposition than its predecessors, as the brand adapts its performance cars to meet tightening global emissions standards.
The Celica’s return was first confirmed at the Rally Japan in 2024, when then Toyota vice-president Yuki Nakajima told fans: “We’re making the Celica!”. Since then, anticipation has been building, with recent sightings of a camouflaged prototype in Portugal — reportedly undergoing testing ahead of the 2027 World Rally Championship — adding further momentum.
According to new information from Autocar UK, Toyota’s Gazoo Racing division is now considering a hybrid 2.0-litre turbocharged engine for the Celica Sport, alongside a confirmed four-wheel-drive layout.
Speaking to the publication, Gazoo Racing marketing manager Mikio Hayashi indicated emissions regulations are a key factor in the shift towards a larger engine capacity.
“The displacement size of 1.6 litres [used in the GR Yaris], for example, cannot meet emission regulations. So we have to consider the possibility of a 2.0-litre.
Read more – Toyota GR Yaris auto – any good?
“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.”
While Toyota has yet to lock in final specifications, the move towards electrification is consistent with broader plans for its Gazoo Racing performance arm. Reports suggest the new powertrain will centre around a next-generation turbocharged four-cylinder petrol engine, designed to work in tandem with hybrid assistance to balance performance with efficiency.
Hayashi confirmed development is ongoing but stopped short of offering a timeline.
“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.”
The new engine is expected to feature a shorter piston stroke than current Toyota units, making it more compact and lighter — a key advantage when integrating hybrid components without significantly increasing overall vehicle weight.
Some reports suggest outputs could be extremely high in certain configurations, with figures of up to 600bhp mooted for more extreme applications, although this is yet to be confirmed by Toyota.
Beyond the Celica, the new hybrid powertrain could also play a role in future updates for models like the Toyota GR Yaris, which has faced sales restrictions in Europe due to stricter emissions rules.
The Celica’s revival also forms part of a broader vision from Toyota chairman Akio Toyoda, who has long spoken about reuniting the brand’s “three brothers” — the Celica, Supra and MR2.
With the Toyota Supra already back on sale since 2019, attention is now turning to the Celica as the next piece of the puzzle. Toyota has also hinted that a return for the MR2 remains under consideration, depending on customer demand.
While key details such as launch timing and final specifications remain under wraps, the direction of the Celica Sport suggests Toyota is aiming to blend its performance heritage with next-generation hybrid technology — potentially creating one of the most technically advanced versions of the badge to date.
