Toyota has slowly expanded its offerings of GR-branded performance cars over the years, with models like the GR Corolla and GR Yaris attaining cult-like status in some markets.
None of the cars feature electrification, but that may change soon, Autocar reported on Wednesday, citing comments from GR engineer Hiroyuki Yamada.
According to the report, GR, which stands for Gazoo Racing, Toyota’s official motorsports arm and performance sub-brand, is developing a hybrid powertrain that uses a newly developed 2.0-liter turbo-4 as its gas component. The move will enable Toyota to meet stricter emissions regulations in both road car and motorsports applications.
“We can use hybrid for future cars,” Yamada is quoted as saying. “This technology we create we will apply to both motorsports and passenger engines.”
Toyota GR Yaris M prototype
The 2.0-liter turbo-4 was announced in January during the 2025 Tokyo Auto Salon, with Toyota revealing it in a mid-engined GR Yaris prototype that rumor has it could be an early test mule for a potential modern-day MR2 sports car. A modern Celica may also be a recipient for the engine.
According to Autocar’s report, the engine features a compact, lightweight design thanks to a shorter piston stroke, and both mild hybrid and plug-in hybrid configurations are supported—with outputs as high as 400 hp possible. Timing for the engine’s market launch, whether as a sole power source or forming part of a hybrid setup, is unknown.
GR is also thought to be developing an electrified V-8 engine for a new sports car that will likely end up marketed as a Lexus. This sports car has already been spotted testing and is expected to hit the market next year.
