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Toyota Celica to return as hybrid, all-wheel drive coupe

More information on the reborn Toyota Celica has come to light, with Gazoo Racing’s all but confirming what will power it.

Jordan Mulach by Jordan Mulach
27 March 2026
in NEWS
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The Toyota Celica is closer than ever to making its long-awaited comeback, and unlike its most recent predecessor, the carmaker isn’t taking any half-measures.

Toyota last made the Celica in 2006, with the last-generation model going front-wheel drive only, as opposed to its three previous iterations which had an all-wheel drive, turbocharged flagship in the GT-Four – a variant which won four WRC driver’s titles, and two manufacturer’s championships in the 1990s.

Late last month, Toyota was spied shaking down its 2027 WRC challenger, with its Gazoo Racing (GR) camouflage livery unable to hide its distinctive coupe body shape, suggesting the new rally car would be based on the long-rumoured reborn Celica.

Toyota Celica return imminent after rally car spied testing

According to UK publication Autocar, the Celica will come back as the Celica Sport, though it’s understood it’ll still fit into the GR family, which has recently become an off-shoot of Toyota.



Speaking to the outlet, GR marketing manager Mikio Hayashi said whatever car is in development is likely to be powered by Toyota’s new turbocharged 2.0-litre four-cylinder engine, currently in development.

“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,” Hayashi said.

“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.

Toyota's new G20E four-cylinder engine, mid-mounted in the Yaris M Concept
Toyota’s new G20E four-cylinder engine, mid-mounted in the GR Yaris M Concept

“We are continuing to develop that [2.0-litre engine]. We have high expectations. We cannot point to a timeline but can say we are making steady progress.”

The new ‘G20E’ turbocharged 2.0-litre four-cylinder engine is expected to succeed the 1.6-litre three-cylinder which powers the GR Yaris and GR Corolla for Toyota’s entry-level, all-wheel drive performance products.

It’s possible the Celica will also be Toyota’s most affordable GR hybrid model, as the only other vehicle in the lineup getting an electrified powertrain is the upcoming GR GT, the spiritual successor to the Lexus LFA.

Jordan Mulach

Jordan Mulach

Motoring Editor
Jordan Mulach is an Australian motoring journalist with a background in motorsport reporting. Now a leading automotive news writer, he combines industry expertise with a passion for cars, sim racing, and all things motoring.

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