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Toyota has confirmed that it is developing a new Celica. More recent automotive reporting says the project may be called the Celica Sport and is being developed with a hybrid powertrain and all-wheel drive. However, Toyota has not yet published a complete production specification sheet. The engine output, hybrid type, transmission, body style, launch date, price, and market availability remain unresolved.
That distinction matters: the hybrid-AWD configuration is supported by reporting about comments from Toyota Gazoo Racing personnel, not by a full official vehicle reveal. Here is what is known, what is likely, and what remains speculation.
What Toyota has actually confirmed
At Rally Japan in November 2024, Toyota Executive Vice President Yuki Nakajima reportedly said, “We will make the Celica,” after Akio Toyoda was asked about the nameplate’s return. The statement is meaningful evidence that Toyota is working on a Celica successor, but it was not a conventional product announcement. Toyota did not provide a production date, pricing, power figures, dimensions, or a final technical configuration at that time. Car and Driver’s report on the 2024 comments provides the relevant context.
A complete Toyota global newsroom release confirming the new car’s final specifications or launch date has not been identified. Toyota’s executive comments therefore support the existence of the development program, while the more detailed equipment claims come from subsequent automotive reporting.
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What the latest reports say about the Celica Sport
In a March 2026 report, Car and Driver, citing Autocar, said Toyota Gazoo Racing marketing manager Mikio Hayashi identified the next sports car as the Celica Sport. The report also attributed two important development targets to Toyota: hybrid power and all-wheel drive. See the reported Celica Sport configuration.
CarExpert independently summarized the same Autocar reporting and described the car as a likely 2.0-liter turbo hybrid with all-wheel drive. It also noted that Toyota’s existing 1.6-liter turbocharged engine could potentially be used during an earlier stage of the project. CarExpert’s summary of the engine reporting is useful, but neither report amounts to a final U.S. specification.
The most accurate description at present is therefore:
Toyota is developing a new Celica, reportedly called the Celica Sport, with a hybrid powertrain and all-wheel drive. A turbocharged 2.0-liter engine is a likely candidate, but the final production system has not been fully confirmed.
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Why all-wheel drive makes sense for a new Celica
All-wheel drive would connect the new car to one of the Celica’s most important performance traditions. Toyota’s 1986 Celica GT-Four used a twin-cam turbocharged engine and full-time four-wheel drive, establishing the Celica as more than a front-wheel-drive coupe. Toyota’s own historical material documents that GT-Four configuration. Toyota’s Celica GT-Four history is the primary reference.
The old GT-Four precedent does not mean the new Celica will reuse the former 3S-GTE engine, manual transmission, center differential, or mechanical layout. Modern Toyota hybrid systems can use electric motors to control torque at one or both axles, potentially delivering all-wheel drive without reproducing the older car’s mechanical architecture.
For Toyota, an AWD hybrid could offer several advantages:
- Traction: Electric torque can be applied quickly when the system detects wheel slip or a need for additional drive force.
- Performance flexibility: Hybrid assistance can fill in torque while a turbocharged engine builds boost.
- Packaging options: An electric rear axle can create all-wheel drive without a traditional propeller shaft, depending on the selected architecture.
- Heritage: The configuration gives the Celica a credible connection to the GT-Four name without simply recreating a 1980s or 1990s drivetrain.
Those are engineering possibilities, not confirmed features of the production car.
The likely 2.0-liter turbo engine
Toyota is developing a new turbocharged 2.0-liter engine for performance applications. Reporting on the company’s G20E engine describes a modern four-cylinder intended to support both motorsport and road-car applications, with potential for transverse and longitudinal installation. Car Watch’s reporting on Toyota’s developing 2.0-liter engine provides technical background.
That engine is a logical candidate for the Celica Sport because it could provide the combustion-engine performance expected of a modern Toyota sports car while working with a hybrid system. But the existence of the G20E does not prove that the Celica will receive it, nor does it establish the final output or state of tune.
Some reports and speculation have circulated around figures near 300 kW or 400 horsepower. Those numbers should not be presented as official. The engine’s eventual output in a Celica, the amount of electric assistance, the battery capacity, and the calibration of the complete system are all still unknown.
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Conventional hybrid or plug-in hybrid?
The word “hybrid” does not answer an important question: will the Celica Sport be a conventional hybrid, or will it be a plug-in hybrid with a larger battery and external charging capability?
Current reporting has not consistently resolved that issue. One report specifically characterized the choice as unsettled. A conventional hybrid could keep weight, packaging, and operating complexity lower, while a plug-in hybrid could provide greater electric-only capability and additional system power at the cost of a larger battery and more mass.
Toyota already has a production example of a sporty plug-in hybrid with electrically controlled all-wheel drive. The Crown Sport PHEV uses Toyota’s E-Four electric 4WD system, demonstrating that the company can combine a performance-oriented vehicle, plug-in power, and electric all-wheel drive. Toyota’s Crown Sport PHEV announcement establishes that precedent, but it does not show that the Celica Sport will use the same system.
Until Toyota identifies the battery, charging capability, motor arrangement, or hybrid system designation, neither conventional hybrid nor plug-in hybrid should be treated as confirmed.
Could the Celica be mid-engine?
Another unresolved issue is the relationship between the Celica Sport and Toyota’s other sports-car prototypes. Toyota has been testing a mid-engine sports-car prototype referred to as the M Concept. Car and Driver reported that its test vehicle used a GR Yaris-based development configuration with the existing 1.6-liter turbocharged three-cylinder engine, while Toyota’s new 2.0-liter engine was discussed as a future possibility. Car and Driver’s drive of the M Concept prototype explains what was actually tested.
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Auto Express reported that Toyota had suggested an all-wheel-drive mid-engine layout could be advantageous for high-performance driving. At the same time, the tested M Concept itself was rear-wheel drive. Auto Express’s prototype coverage illustrates why the development cars should not be confused with a finished Celica.
The M Concept may be related to Toyota’s broader sports-car strategy, and some coverage has connected it with a possible future MR2 or Celica. But Toyota has not issued a complete product announcement assigning a specific production name, body style, engine location, or drivetrain to each project.
Accordingly, the new Celica’s engine location and body configuration remain open questions. The reported hybrid-AWD system does not, by itself, prove that the car will be mid-engine.
What is known versus what is still speculation?
| Detail | Current status | How to describe it |
|---|---|---|
| New Celica development | Strongly supported | Toyota executive comments reported in 2024 support this directly. |
| “Celica Sport” name | Reported, not confirmed in a full launch release | Use “reportedly” or attribute it to Autocar reporting. |
| All-wheel drive | Meaningfully supported by reporting | Describe it as a reported development target. |
| Hybrid power | Meaningfully supported by reporting | Describe the project as reported to use hybrid power. |
| Turbocharged 2.0-liter engine | Plausible and repeatedly reported, but not fully locked | Use “likely,” “expected,” or “under consideration.” |
| Hybrid type | Unresolved | Do not call it a PHEV or conventional hybrid without qualification. |
| Power output | Unresolved | Do not publish 300 kW or 400 horsepower as final figures. |
| Transmission | Unresolved | No manual, automatic, or dual-clutch unit is confirmed. |
| Body style and engine location | Unresolved | Do not treat the mid-engine M Concept as the production Celica. |
| Launch date | Unresolved | 2027 is a reported possibility, not a confirmed model year. |
| U.S. availability | Unresolved | No North American launch should be assumed. |
When could the new Celica arrive?
Some reporting has suggested a launch by 2027 or later. CarExpert described 2027 as a possibility, while later prototype coverage indicated that development was still continuing and that additional teasers could appear in 2027. The timing discussion remains provisional.
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Market availability is even less certain. Toyota’s current U.S. 2026 vehicle information does not list a Celica Sport production model. Toyota’s 2026 U.S. vehicle information therefore cannot be used to infer that the new Celica is already confirmed for America.
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Will it replace the GR86?
There is not enough official information to say that the Celica Sport will replace the GR86. Toyota’s developing sports-car projects may share technology, suppliers, or a broader performance strategy, but the company has not published a final product plan showing that the Celica will take over the GR86’s role.
The reported hybrid AWD configuration would also suggest a different character from the current lightweight, rear-wheel-drive sports-car formula. Until Toyota confirms dimensions, curb weight, seating, pricing, and positioning, comparisons with the GR86 should remain conceptual rather than definitive.
What enthusiasts should watch for next
- A formal Toyota reveal: Look for an official name, body design, powertrain description, and market designation.
- Hybrid-system details: Toyota will need to clarify whether the car is a conventional hybrid or plug-in hybrid.
- Engine confirmation: Watch for confirmation that the G20E 2.0-liter turbo is used in the production car, rather than merely being a related development engine.
- Drivetrain architecture: The company may reveal whether all-wheel drive uses a mechanical connection, electric rear axle, or another arrangement.
- Production and market information: Pricing, manufacturing location, reservation procedures, and regional availability will determine whether buyers outside Japan can actually order one.
Bottom line
The new Toyota Celica is a real development project, based on Toyota executive comments reported in 2024. The name Celica Sport, along with hybrid power and all-wheel drive, has since been reported through coverage of Toyota Gazoo Racing personnel. A turbocharged 2.0-liter engine is a credible candidate, particularly in light of Toyota’s G20E development program.
But the car has not yet reached the point where its full production identity can be stated with certainty. The hybrid type, engine output, transmission, layout, price, launch timing, and availability in the United States and other markets remain unconfirmed. For now, the most accurate expectation is a Toyota sports car that aims to combine Celica GT-Four heritage with modern hybrid and AWD technology—not a finalized 400-horsepower 2027 production specification.
Frequently Asked Questions
Is Toyota definitely making a new Celica?
Toyota executive comments reported at Rally Japan in November 2024 strongly support that the company is developing a new Celica. Toyota has not yet released a complete production announcement with final specifications, pricing, or a firm launch date.
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Will the Toyota Celica Sport be hybrid and all-wheel drive?
Automotive reporting attributed to Toyota Gazoo Racing personnel says the Celica Sport is being developed with hybrid power and all-wheel drive. The configuration is meaningfully supported by reporting, but it is not yet a complete official production specification.
Will the new Celica use a 2.0-liter turbo engine?
A turbocharged 2.0-liter engine is considered likely or under consideration, and Toyota is developing such an engine for performance applications. Its use, output, and state of tune in the production Celica have not been fully confirmed.
Will the new Toyota Celica be a plug-in hybrid?
That remains unresolved. Current reporting identifies hybrid power but does not consistently establish whether the car will use a conventional hybrid system or a plug-in hybrid system.
When will the new Celica launch?
Reports have suggested 2027 or later, but Toyota has not verified a firm production launch date. The 2027 timeframe should be treated as a possibility rather than a confirmed model year.
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U.S. availability has not been confirmed. Toyota’s current U.S. 2026 vehicle information does not list a Celica Sport production model, so a North American launch should not be assumed.
The Bottom Line
The headline is directionally right but needs a qualification: Toyota is developing a new Celica, and reporting points to a hybrid, all-wheel-drive Celica Sport. The exact engine, hybrid system, output, transmission, launch date, price, and market availability are still unresolved.
