Rumors are swirling about the return of the Toyota Celica, and this time the legendary Japanese nameplate could bring a radical technical transformation. Unlike the seven generations produced between 1970 and 2006, all front-engined, with rear-wheel drive on the early models and front-wheel drive on the later ones, the upcoming eighth generation, expected by late 2027, is said to adopt a completely new layout: a mid-engine with rear-wheel drive.
According to the Japanese magazine Best Car, which reported the scoop, the new Celica, internally coded 710D, will make its official debut at the 2027 Tokyo Motor Show. The technical foundation is believed to come from the GR Yaris M Concept, unveiled at the 2025 Tokyo Auto Salon, a hot hatch radically reengineered into a mid-engined testbed. Toyota presented the GR Yaris M not as a mere showpiece but as a true development prototype for honing future sports car technology.
At the heart of the next Celica is expected to be a mid-mounted 2.0-liter turbocharged four-cylinder, paired with all-wheel drive and producing around 400 HP in standard form, with potential for much higher outputs. In the GR Yaris M, the same engine delivered 450 HP, with speculation of versions exceeding 600 HP, even without electrification. For the Celica, Toyota is reportedly considering both a six-speed manual for purists and Gazoo Racing’s eight-speed Direct Automatic Transmission.
Stylistically, the new coupe may draw inspiration from the 2023 FT-Se concept. Although that prototype was fully electric, its proportions were unmistakably mid-engined, and Toyota hinted that its design language could be adapted to internal combustion applications as well.
Positioning the Celica as a mid-engined sports car inevitably raises questions about the future of the MR2, which has historically filled that niche in Toyota’s lineup. While rumors of a new MR2 have persisted, the overlap with a reborn Celica makes two similar models hard to justify, unless the MR2 is reinvented as a fully electric sports car.
Toyota’s strategy looks clear: the Supra at the top with around 500 HP from a hybridized turbo-four and front-engine RWD setup, the Celica as a mid-engined powerhouse just below, and the GR86 as the entry-level coupe. If confirmed, these moves would make Toyota one of the few mainstream automakers still heavily invested in sports coupes in an era dominated by SUVs and EVs.
