- Toyota tested a mid-engined GR Yaris prototype in Japan.
- An insider did not deny the ongoing GR Celica rumors.
- The front-engined WRC prototype was spotted in Portugal.
Last week’s sighting of a camouflaged GR rally car testing in Portugal has reignited talk of a Celica return to the WRC. At the same time, Toyota staged a demo run of its mid-engined GR Yaris M concept in Japan, where someone involved reportedly “didn’t deny” the Celica rumors. Make of that what you will. What’s clear is that GR has something substantial in the works, both for the road and for the stages.
The GR Yaris M Concept debuted in January 2025 with a mid-mounted turbo 2.0-liter engine and AWD. After a few development hiccups, the program is back on track. Many see it as a preview of a future mid-engined production sports car, either a revived GR MR2 roadster or a GR Celica coupe.
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At the opening round of the All Japan Rally at Mikawa Bay, Toyota rolled out a different GR Yaris M prototype. This one was driven by Morizo and Takamoto Katsuta and used a smaller turbo 1.6-liter engine, suggesting it was closer to an early development mule than a finished evolution.
Toyota Gazoo Racing World Rally Team / Instagram
Compared to the black hatchback competing in Japan’s Super Taikyu Series, the white GR Yaris M looked more stage-ready than circuit-focused. It rode on smaller alloy wheels with a gravel-spec setup and featured provisional side intakes plus a new roof scoop. Missing were the fender extensions, vented hood, and oversized rear wing seen on the earlier version, suggesting this was more development mule than finished article.
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According to Japanese outlet Best Car , someone close to the project was asked directly about the car’s identity. They offered no hard details, but reportedly “didn’t deny that the test car wasn’t a Celica.” That carefully phrased non-answer has done little to calm speculation.
Mid-Engined or Front-Engined?
Toyota has already confirmed that the Celica will return to the production lineup wearing Gazoo Racing emblems. The company has also acknowledged it is working on a mid-engined sports car, widely believed to be the long-rumored revival of the MR2.
Every previous Celica has been front-engined, but Best Car suggests the next generation could move to a mid-engined layout. Toyota has yet to confirm anything, leaving the final configuration open. If and when the GR Celica arrives, the most likely candidate under the hood remains the new turbo 2.0-liter engine.
A New WRC Contender Takes Shape
Premières images de la Toyota WRC27 en essais au Portugal #WRC
Photos : Marcio Pereira pic.twitter.com/JLDMR9ejMn
— Rallye Sport (@RallyeSport) February 26, 2026
The latest chapter in the Celica story centers on Toyota’s GR-branded rally car being readied for the 2027 WRC season. It surfaced in Portugal during development testing on proper rally stages, and it did not look like a GR Yaris. The two-door coupe silhouette clearly departs from the familiar hatchback shape, hinting that Toyota may be lining up a return of the Celica name for its next WRC challenger.
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The new rally car is said to sit on the GR Yaris Rally2 underpinnings, which means the engine stays up front. As per WRC regulations, it will run a turbo 1.6-liter engine sending power to all four wheels through a standardized five-speed gearbox. We also know it will ride on a spaceframe chassis, using existing Rally2 gear for the steering and braking systems.
Using the available spy shots, we put together a speculative rendering of what a rally-prepped GR Celica could look like. The eventual production version, however, will almost certainly evolve from this early test car. Its final proportions may shift as well, depending on where Toyota ultimately decides to place the engine.
