Toyota is set to revive the MR2 formula, having confirmed earlier in 2026 that an affordable mid-engined sports car is under development.

The latest news to filter through about the new model, as revealed by Auto Express, reveals that Toyota’s open-air testing of the mid-engine platform will result in a major change to the new model, compared to the three generations that came before it.

With a modified version of the GR Yaris, called the Concept M, converted to a mid-engine layout, Toyota has been actively prototype testing the next MR2 in Japan’s Super Taikyu racing series.

The latest information to surface reveals that, as expected, the new mid-engine car will be powered by Toyota’s new ‘G20E’ 2.0-litre four-cylinder turbo petrol engine. In racing trim, the new engine produces up to 370kW, although production versions are expected to sit closer to 300kW in flagship GR cars.

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The eye-opener, for the new MR2, is confirmation that, unlike its predecessors, the fourth-generation MR2 will adopt all-wheel drive to help it harness the new engine’s power. The chief engineer of Toyota’s GR performance car division, Naohiko Saito, is reported as saying that “This layout is new for us, but we have found in our initial testing that the combination of an all-wheel-drive mid-ship layout offers the best layout for high-performance driving”.

The new engine is set to appear not just in the MR2, but also become the basis for other future GR models, like the next-generation GR Corolla. Its larger capacity gives Toyota greater tuning freedom compared to the current size-restricted G16E 1.6-litre three-cylinder, which was designed with WRC homologation in mind.

As with its predecessors, the next MR is tipped to retain a transverse engine layout. A format similar to the Lotus Emira, but distinct from other all-wheel drive mid-engine cars, like the Lamborghini Temerario, which use a longitudinally-mounted mid-engine layout.

The lowlight among these latest details is that the new 2.0-litre, mid-engine, all-wheel-drive MR2 has been designed to pair with a version of the eight-speed automatic already available in the GR Yaris and GR Corolla, rather than a six-speed manual.

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Styling for the new mid-engined sports car is expected to adhere to the design first proposed for the electric FT-Se concept (pictured here) in 2023, despite the switch to a combustion powertrain.

While this latest information provides a glimpse of what to expect from the new MR2 when it finally reaches production, Toyota is still no closer to formalising an expected timeframe for the new model’s arrival.