Reborn Toyota Celica Set for Hybrid AWD Powertrain as Iconic Coupe Returns After Two Decades

toyoto celica

The Toyota Celica nameplate, dormant for more than twenty years since the seventh-generation model ended production, is finally on course for a full revival. Toyota officially confirmed the return of the Celica in late 2024, marking a significant step in chairman Akio Toyoda’s long-held ambition to resurrect the “three brothers” — the Supra, Celica and MR2. The fifth-generation Supra had already returned in 2019 through a collaboration with BMW, and development work on a new mid-engined MR2 is progressing in parallel. The Celica is now expected to complete the trio as an eighth-generation sports coupe that will serve as an accessible entry point into Toyota’s expanding Gazoo Racing performance lineup.

Recent reports indicate the reborn Celica, referred to internally as the Celica Sport, will adopt a hybrid all-wheel-drive powertrain. It is expected to use Toyota’s new 2.0-litre turbocharged four-cylinder engine, known as the G20E, mounted at the front in keeping with every previous generation of the model. This engine will form part of a self-charging hybrid system similar in concept to those used in mainstream Toyota models such as the Corolla, helping the car meet increasingly strict global emissions regulations while delivering strong performance. Outputs in the region of 400 horsepower are anticipated for the road-going version, with higher figures possible in motorsport applications. All-wheel drive will be standard, drawing on rally-derived technology familiar from the GR Corolla and GR Yaris, ensuring the new Celica pays tribute to the GT-Four models that once dominated the World Rally Championship.

The platform is understood to share underpinnings with the next-generation Corolla, providing a practical foundation for a compact two-door coupe while allowing Toyota to control costs and development time. A choice between a six-speed manual and an automatic transmission is also being considered. Beyond the road car, Toyota is preparing a Celica-based rally machine for the 2027 World Rally Championship season. While WRC regulations require a 1.6-litre engine, the production model will use the larger 2.0-litre hybrid unit to satisfy road-car emissions rules.

This combination of hybrid efficiency, all-wheel-drive traction and sporting intent positions the new Celica as a more focused alternative to softer contemporary coupes. It will sit below the GR Supra in Toyota’s performance hierarchy yet offer greater accessibility and everyday usability than a pure sports car. With development already well advanced and prototype testing under way, the eighth-generation Celica is expected to arrive in the latter half of the decade, finally bringing one of Toyota’s most cherished nameplates back to showrooms after its long absence.

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