Toyota is bringing back the Celica, and it’s not just a nostalgia play. The company’s performance division, Gazoo Racing (GR), has confirmed that the revived model – dubbed the Celica Sport – will feature an all-wheel-drive (AWD) hybrid powertrain. This move signals a serious commitment to the sports car segment even as the current Supra generation nears retirement.
A New Era for an Iconic Name
The Celica name carries weight: past generations experimented with front-, rear-, and all-wheel-drive layouts, with the All-Trac Turbo establishing a legacy in rally racing. Toyota appears set to capitalize on this history, with testing of a prototype rally car spotted in Portugal earlier this year hinting at the Celica’s potential future in motorsport. The World Rally Championship (WRC) rule changes in 2027 likely drove this decision, as the current Yaris-based racer will become ineligible.
Hybrid Power: A 2.0-Liter Turbocharged Engine
The Celica Sport will likely be powered by a new turbocharged 2.0-liter engine that Toyota first teased at the 2025 Tokyo Auto Salon. GR marketing manager Mikio Hayashi has stated the need for larger displacement to meet increasingly strict emission regulations. The engine’s design – featuring a shorter piston stroke – is aimed at keeping weight down, even with the addition of hybrid components (battery and electric motor).
While exact power figures remain unconfirmed, speculation points to around 400 horsepower, with some reports suggesting the potential for over 600 horsepower with an upgraded turbocharger. Toyota has not yet revealed whether the hybrid system will be standard or plug-in.
Broader Implications for GR Lineup
This new 2.0-liter engine isn’t exclusive to the Celica. Toyota plans to use it across its GR performance lineup, with the GR Yaris (in Europe) and GR Corolla (in the US) being prime candidates for future upgrades. The Celica’s launch timeline remains unconfirmed, but development is reportedly “making steady progress.”
Toyota’s revival of the Celica Sport marks a significant investment in its performance car division. The combination of AWD, hybrid technology, and a powerful new engine positions the Celica as a modern, capable sports car that honors its heritage while pushing into the future.
