Toyota’s GR sports arm will reportedly be transformed into its own brand by the end of the decade, according to a report from UK publication Autocar, with a new-generation MR2 to be launched as part of the standalone brand launch. Gazoo Racing has produced high-performance cars such as the GR Yaris, GR Corolla and new GR GT supercar, and now Toyota apparently wants to separate it from other Toyota brands such as Lexus with the launch of a new-generation MR2 by around 2028.

The upcoming MR2 was reportedly previewed by the GR Yaris M concept car from early 2025 as it used a mid-engined layout and a new ‘G20E’ 2.0-litre turbocharged four-cylinder petrol engine which was claimed could make up to 450kW (600hp) of power in racing cars, and a minimum of 298kW (400hp) for road cars as well, making it quite potent. Autocar reports that the engine will also be compatible with hybrid tech to help with emissions.

Close-up of an orange sports car's front end, showing the sleek hood, angled headlight cluster, and lower grille with a GR badge on the hood edge, set against a blue background.
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Unlike the previous MR2 models, which were known for their somewhat tail-happy handling, the new coupe will be fitted with all-wheel drive as standard. But like the GR Yaris and GR Corolla, drivers will be able to choose the power spread between the front and rear axles – this time, including the ability to make it rear-drive only.

Rivals for the new MR2 are expected to be rare owing to the state of the performance car market, especially the mid-engined sector. The Lotus Emira immediately comes to mind, as well as the Alpine A110 and Porsche 718. Beyond drive layout, cars such as the BMW M2 and Nissan Z would also compete well with the MR2.

The design of the new MR2 will likely be influenced by the electric FT-Se concept car from 2023 shown in these images, with its sharp styling, funky cabin layout and futuristic features. The FT-Se was launched to preview an electric sports car and is decidedly mid-engined in its layout, but Toyota’s future plans changed to include petrol power as part of its ‘multi-pathway’ approach to drivetrains.

When the new MR2 does launch, and Autocar reports that it will likely be in 2028, it will also forego any Toyota badging. The company has already trademarked GR MR2, meaning it will likely follow the GR GT in being separated from its parent company.