Toyota is on track with the development of its performance engines as the company is reportedly working on a new 2.0-liter four-banger for applications specifically in its new hybrid GR sports cars. According to AutoCar in the UK, Toyota’s new turbocharged four-cylinder-based gas-electric hybrid powertrains are working wonders for the automaker, particularly when it comes to meeting new and stricter emissions compliance regulations.
Just last year, in 2024, Toyota announced its partnership with Mazda and Subaru to cooperatively develop new internal combustion and electric powertrains and almost a year later, those plans are coming to fruition. The latest high-performance 2.0-liter four-cylinder in discussion here is one of those new internal combustion engines. Toyota also teased the motor in the recent GR Yaris M Concept, which shocked the world with its mid-body placement, hinting at what may possibly be the version destined for the company’s mid-engine sports car/MR2 revival.
Toyota Gazoo Racing’s New High-Performance Gas-Hybrid System Can Support Mild And Plug-In Capabilities
In the latest development, Toyota appears to be further embracing hybrid powertrains, especially in the performance segments. Previously, Toyota often relied on hybrid powertrains to market and sell more fuel-efficient models like the Prius, and versions of some of its gas-only models. Now, because automakers are dialing back on hard electrification efforts and circling back to investing in ICE-tech, hybrids are being perceived as the next interim step towards electrification.
In terms of its sports cars, Toyota also sees the benefits of hybrid powertrains, thanks to their ability to produce fewer tailpipe emissions while boosting overall fuel economy, all without sacrificing power output or performance.
“We can use hybrid for future cars [which use this engine]. We will use it in our motorsport activities in the future, because of emissions,” according to Hiroyuki Yamada, one of Gazoo Racing’s lead engineers, speaking with AutoCar. “This technology we create will we apply to both motorsport and passenger [car] engines. In the future, we want a more fuel-efficient engine [for GR cars].”
Specifics for this latest high-performance 2.0-liter four-pot-based hybrid system aren’t yet available. But rumors and speculation suggest a total output of around 400 horsepower, which corroborates similar past reporting based on the reveal of the GR Yaris M Concept in January 2025. And with recent reports confirming Toyota’s revival of some of its iconic sports cars, as well as rumors of the Toyota Supra going for a 2.0-liter four-cylinder-based powertrain in place of its original inline-six, this new powertrain could be the one to propel those models..
Toyota also recognizes the huge leap forward and improvement in brand perception provided by the launch of the Gazoo Racing division. From a halo car standpoint, Toyota noticed an increase in brand value, especially since, in contrast, critics and car enthusiasts previously called Toyota “the most boring automaker in the world” because of their lack of performance or sports car offerings.
“What the GR has done, from a halo point of view, looking into our brand, has been amazing in terms of the Yaris,” Toyota UK’s boss, Scott Thompson, told AutoCar in a recent interview. Thompson also recognized the potential hybridization offers in terms of future products, since they provide the best of both ICE- and electric car worlds. “Hybrid systems are always a good solution for environmental cars, not just for passenger cars but for sporty cars as well,” chief technology officer, Hiroki Nakajima, previously told AutoCar in 2023.
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