Reborn Toyota MR2 could be a mid-engine, all-wheel drive rocket (2025)

Speculation continues over the future of Toyota's sports car lineup, with the latest reports suggesting the brand's in-development turbocharged four-cylinder engine could be used in an MR2 successor.

Japanese outlet Best Car reports the 2.0-litre engine could find a home in a reborn MR2 and Celica, though it's unconfirmed whether any upcoming model will actually wear those nameplates, and the power unit is still in development.

Now, the rumoured mid-engined all-wheel drive sports car in development will reportedly use the upcoming 2.0-litre turbo four-cylinder instead, with no hybrid or electric assistance.

It was previously thought a new MR2 would be mid-engine, rear-wheel drive as per the old model, though Best Car suggests it could instead adopt a version of Toyota's GR-Four AWD system

According to the publication, Toyota's new 2.0-litre turbo is anticipated to be available in different states of tune, starting with a base version outputting 221kW of power and 400Nm of torque – identical to what all versions of the GR Corolla will receive with an upcoming update.

A high-performance version could boost those numbers to 294kW and 550Nm, while a racing version could bring as much as 441kW.

It's not clear which other GR models could use the four-cylinder engine.

The new MR2 is estimated to cost around 10 million yen (around A$100,000) as a very rough guide, and it's been suggested could be produced in limited numbers and only sold in Japan.

It may also follow the GR Yaris and GR Corolla in offering a choice of either a six-speed manual or eight-speed automatic transmission.

The rumours follow calls from Toyota's chairman for a new Celica, which could be mechanically similar but with a front-engine layout.

That announcement brought with it a commitment to develop lower-emissions internal combustion engines that will lean on hybrid tech and the use of synthetic fuels.

At the time, Toyota previewed a new 1.5-litre (available in both naturally aspirated and turbo guise) and a 2.0-litre turbo, the latter of which is the centre of speculation surrounding a potential new MR2.

It was reported the 1.5-litre will succeed the carmaker's current identical-displacement engines, though it'll not only occupy 10 per cent less space but also provide "big fuel efficiency gains" in naturally aspirated guise.

The 2.0-litre turbo meanwhile will replace Toyota's current 2.4-litre turbo engine and offer more power while using less fuel, both in comparison to the larger unit currently in production but also the brand's existing 2.0-litre offerings.