Toyota is hard at work reviving iconic nameplates, and luckily for enthusiasts, this also extends to the brand’s sports cars. We have been hearing about Toyota MR-2’s return since 2019, but until a few months ago, we didn’t have any concise information. Reports from Japanese outlets were gradually revealing details about Toyota’s soon-to-be-revived, mid-engine sports car. In stark contrast to what we initially believed, the new MR-2 will not be a budget-friendly model, co-developed with Daihatsu and Suzuki. This turned out to be Toyota’s S-FR, which will also be sold as the new Suzuki Cappuccino and Daihatsu Copen and would compete with Mazda’s MX-5 Miata. This puts the MR-2 in a whole other league, and judging by the performance figures revealed, it would also likely be able to keep pace with most variants of the Porsche 718. Maybe even outperform it?

Toyota’s MR-2 gradually fell from grace with its last generation

Toyota MR-2 was a mid-engine sports car inspired by the Ferrari 348. While the original MR-2 had a punchy, supercharged variant, it was the second generation, with its 3S-GTE, turbo-four engine that earned the Toyota MR-2 the nickname "Poor man’s Ferrari”. Essentially, the MR-2 GTS matched the Ferrari’s performance, and unlike the Italian supercar, worked all the time. The third and last generation (for now) MR-2 lost the 2.0-liter turbo engine in favor of a smaller 1.8-liter unit, shared with the Celica. For obvious reasons, it never became as popular as the SW20 Toyota MR-2, but this upcoming generation is set to fix that.

Toyota MR-2 will, once again, share an engine with the Celica

Toyota recently introduced two new engines that are replacing a large number of existing powertrains, featured in Toyota and Lexus models, including the 2GR-FSE V-6 unit. While the emphasis is on hybrid powertrains, the larger of these two engines – a 2.0-liter, turbocharged, inline-four – will be featured in Toyota’s new MR-2 and Celica. Initial reports suggested that the new MR-2 would share an engine with the Toyota GR Corolla, but that didn’t make sense, since the MR-2 was said to be positioned above the Celica, which before that was confirmed to have the new, 2.0-liter turbo-four.

Toyota’s new turbo engine will be a force to be reckoned with

We now have numbers for the new Toyota, turbocharged, four-cylinder engine. In its most powerful form, it will make 400 horsepower and 405 pound-feet (550 Nm) of torque, which puts it in a similar league as the Mercedes M139 engine. The same engine will be fitted in the upcoming Toyota Celica, which will also feature all-wheel drive. It will also be called the GR Celica, and will, essentially, be a revival of the iconic Celica GT-Four, that Toyota used in rallying, back in the 1990s.

Which Porsche 718 will the MR-2 compete with?

Currently, there are seven different variants of the Porsche 718 when it comes to the engine. The MR-2 is expected to make the full 400 horsepower from the new engine, making it comparable to the Porsche 718 GTS 4.0, which shares an engine with the hardcore Porsche 718 GT4 RS. The German mid-engine sports car, however, relies on a 4.0-liter, naturally-aspirated flat-six to make the same power. The MR-2 will also have the torque advantage thanks to forced induction – 405 pound-feet versus the Porsche’s 309.

Does this also mean, the Toyota Celica can compete with the Porsche 992.2 911 Carrera? There are also rumors that the 2026 Toyota MR-2 will be manual-only, but this is not yet confirmed. In most other applications, the 2.0-liter, Toyota turbo engine will be able to work with an eight-speed automatic or a new, seven-speed DCT, which will be featured in the 2025 Toyota Supra GRMN.

How will the 2026 Toyota MR-2 change the sports car market?

In just a few years, Toyota went from being most known for its sensible, boring, dependable cars, to one of the hottest, enthusiast-friendly car companies. Toyota already turned the enthusiast car market upside down with models like the GR86, GR Yaris, and GR Supra. The MR-2 will be another capable sports car to undercut more expensive models. Older Toyota MR-2 models were, often, used as a base for cool Porsche replicas, but now, the MR-2 will take its revenge. The mid-engine layout seems to be reserved for the high-end exotic cars, unattainable by most. The much-anticipated return of Toyota’s MR-2 will change that. The cheapest mid-engined Porsche 718 today will set you back $72,800 before options. If Toyota can undercut this, they might stand a chance of rattling the sports car market.

GALLERY