All eyes were on Toyota at the beginning of the year when it unveiled a mid-engine GR Yaris at the Tokyo Auto Salon. As if that wasn’t intriguing enough, the hot hatch ditched the familiar 1.6-liter three-cylinder it shares with the GR Corolla in favor of a larger four-cylinder 2.0-liter engine. The plan was to test the pocket rocket in endurance racing a few months ago, but its track debut was postponed after encountering “difficulties” during development.
Fast-forward to October: the “G20E” is still a work in progress, but Toyota has now successfully tested the new engine in competition. None other than company chairman Akio Toyoda finished third overall, piloting the mid-engine GR Yaris during the sixth round of the Super Taikyu Series at Okayama Circuit.
Following earlier reports from Japan, Toyota now confirms it’s targeting more than 400 horsepower. The engine ran entirely on gasoline during the race, but it's being developed to support a 20-percent ethanol blend (E20). According to Japan's Car Watch magazine, the G20E is derived from the “G16E” used in the GR Yaris, GR Corolla, and Lexus LBX Morizo RR crossover.
After the race, Akio Toyoda wouldn’t commit to a launch date but said Toyota has “definitely taken a step forward.” The development team echoed his optimism, noting they encountered no major issues during the three-hour race. Once ready, the G20E could power a wide range of vehicles, as it can be mounted longitudinally or transversely in front- and mid-engine layouts.
The 2.0-liter turbo engine was first announced in May 2024 as part of a new family of smaller, more efficient powertrains. A report from The Financial Times claims Toyota plans to launch the first vehicles with these engines in late 2026. Beyond the G20E, there will be 1.5-liter naturally aspirated and turbocharged variants, all reduced in volume, height, and weight.
Toyota says the new engines will “revolutionize vehicle packaging” and improve aerodynamics. Future models will feature lower hoods for better airflow and efficiency, made possible by reducing engine height. The 2.0-liter turbo was even tested in a Lexus IS prototype, where it was mounted further back to lower the sedan’s center of gravity.
Beyond engines, the GR Yaris M also debuted a new four-wheel-drive system with adjustable power splits: 40:60 or 50:50 front/rear. For comparison, the existing setup can send up to 60 percent of torque to the front wheels or 70 percent to the rear.
Toyota continues to drop hints about committing to fun cars. Besides suggesting the Celica will return, the company has pledged to revive the Supra shortly after the current BMW Z4-based model ends production in March 2026. Above them all will sit a road-going GT3-derived supercar, scheduled to debut in early December.
