Toyota is preparing to revive one of its most recognizable sports cars, with the legendary Celica reportedly set to return for an eighth generation more than two decades after the previous model disappeared from showrooms. Positioned as a new entry point for Toyota’s expanding Gazoo Racing performance family, the next-generation Celica could become one of the most significant sports-car revivals of the decade.

Although Toyota has yet to confirm a production timeline, the potential return of the Celica fits perfectly with chairman Akio Toyoda’s long-standing ambition to bring back what he affectionately calls the brand’s “three brothers”: the Supra, MR2 and Celica.

With the Supra already revived and a new mid-engine MR2 apparently moving closer to production, attention is increasingly turning toward the Celica.

Toyota Celica Revival Could Complete the “Three Brothers”

The Celica has been absent from Toyota’s lineup since the seventh-generation model ended production in 2006. Its return would therefore mark a major moment for enthusiasts who remember the nameplate as one of Toyota’s most important affordable performance cars.

The Supra has already returned, developed jointly with BMW, while Toyota is believed to be working on a new MR2. That leaves the Celica as the final piece of Toyoda’s sports-car strategy.

Unlike the Supra, however, the Celica is expected to occupy a more accessible position within the lineup. Rather than competing directly with high-performance sports cars, the new model could serve as an entry-level GR product positioned beneath the Supra and the upcoming GR GT supercar.

That would give Toyota a three-tier performance portfolio: an affordable sports coupe, a mid-engine MR2 and a flagship Supra/GR GT family at the higher end.

2027 Toyota Celica Could Have a Strong WRC Connection

One of the biggest clues pointing toward the Celica’s return comes from Toyota’s World Rally Championship program.

A prototype being used to develop Toyota’s 2027 WRC challenger has reportedly been spotted wearing a dramatic new two-door body. While next-generation WRC regulations will no longer require rally cars to closely resemble production vehicles, using a Celica-inspired body would provide Toyota with an obvious marketing opportunity.

It would also reconnect the Celica with one of the most successful chapters in its history.

Toyota previously used Celica-based rally cars extensively during the World Rally Championship era, with the Celica GT-Four becoming particularly famous for its combination of four-wheel drive, turbocharged power and rally-winning performance.

Toyota won the 1993 and 1994 WRC manufacturers’ championships with Celica-based machinery, making the nameplate synonymous with Toyota’s rally heritage.

A modern Celica competing in the WRC would therefore be more than a marketing exercise. It would represent a return to the model’s historical roots.

New Celica Expected to Share Technology With the Corolla

The next Toyota Celica is expected to use mainstream Toyota components beneath its sports-car body, following a formula employed by previous generations.

The most logical donor could be the next-generation Corolla.

Toyota previewed a radical new Corolla concept at the Tokyo motor show, suggesting that the company’s best-selling compact model is about to enter a new design and engineering era. A two-door Celica derived from the same architecture would allow Toyota to spread development costs across multiple models while creating a distinctly more emotional interpretation of the platform.

This approach would also put the Celica in direct competition with the Honda Prelude.

Like the proposed Celica, the Prelude takes the basic architecture and technology of a mainstream Honda model and transforms it into a stylish two-door sports coupe. The rivalry between the Toyota Celica and Honda Prelude could therefore become one of the most interesting Japanese sports-car battles of the coming years.

Toyota Celica Sport Could Become a GR Entry Model

Toyota is reportedly considering the internal name “Celica Sport” for the new coupe.

If production goes ahead, the model could become one of the least extreme ways to enter Toyota’s GR performance range. Instead of focusing exclusively on outright performance, the Celica could combine sporty handling and styling with everyday usability.

That positioning would make sense for Toyota’s broader performance strategy.

At one end of the range sits the GR Yaris, a compact performance hatchback with a strong motorsport connection. Above it could be the new Celica, offering a traditional two-door coupe experience. Further up the range sits the Supra, while Toyota’s forthcoming GR GT is expected to occupy the supercar category.

The result would be a much broader GR lineup than Toyota offered just a few years ago.

New Toyota Celica Engine: What Could Power It?

One of the biggest unanswered questions concerns the powertrain.

The new Celica is expected to use a 2.0-liter engine rather than the three-cylinder unit found in the current GR Yaris. Toyota GR marketing manager Mikio Hayashi has previously indicated that the three-cylinder engine may not be able to satisfy future emissions requirements in some road-car applications.

That opens the door for Toyota’s next-generation 2.0-liter engine.

The same engine family is reportedly being considered for the new MR2, where packaging requirements are particularly important. Toyota has also been developing smaller, more efficient engines designed specifically to fit low-slung vehicles while maintaining useful cabin space.

For the Celica, the 2.0-liter engine could be paired with hybrid technology.

Toyota has not confirmed whether the system would be a conventional hybrid or a plug-in hybrid, but the next-generation Corolla is expected to offer both technologies. Sharing components between the Corolla and Celica would therefore make considerable financial and engineering sense.

The exact output remains unknown, but a combination of a turbocharged 2.0-liter engine and electric assistance could give the Celica substantially more performance than its mainstream underpinnings might initially suggest.

Four-Wheel Drive Expected for the New Celica

Regardless of the final engine and hybrid configuration, four-wheel drive is reportedly expected to be part of the new Celica’s formula.

That would be a significant advantage if Toyota wants the car to maintain a genuine performance identity.

All-wheel drive would also connect the new model with the Celica’s rally heritage, particularly the legendary GT-Four models that became icons among performance-car enthusiasts.

However, Toyota has not indicated whether it plans to revive the GT-Four name.

That decision could ultimately depend on how aggressively the company positions the new Celica. If the model becomes a genuine high-performance GR coupe, the GT-Four badge would be an obvious way to connect it with Toyota’s rally history. If it is instead positioned as a more affordable and efficient sports coupe, Toyota may choose a completely new naming strategy.

The Celica Could Be Toyota’s Answer to the Honda Prelude

The potential return of the Celica comes at an interesting time for the Japanese sports-coupe market.

For years, affordable Japanese performance coupes virtually disappeared as manufacturers concentrated on SUVs, crossovers and electrification. The return of models such as the Honda Prelude suggests that there may still be demand for stylish two-door cars with relatively accessible pricing.

A new Celica would give Toyota an opportunity to compete directly in this emerging niche.

The key will be finding the right balance between performance, efficiency and price. A hybrid-assisted four-wheel-drive coupe could deliver impressive acceleration and traction while remaining significantly more practical and affordable than exotic sports cars.

Celica Name Carries Serious Heritage

Few Toyota names carry as much motorsport and enthusiast credibility as Celica.

The model first appeared in 1970 and evolved through seven generations, moving from a relatively simple compact coupe into increasingly sophisticated performance machines. The Celica GT-Four in particular became an icon thanks to Toyota’s success in international rallying.

The seventh-generation Celica adopted a different philosophy, becoming lighter and more economical while offering a sharper, more youthful character. Production ended in 2006, leaving Toyota without a traditional affordable sports coupe for many years.

The eighth-generation model could therefore combine the best elements of several generations: compact dimensions, a low-slung coupe body, modern hybrid efficiency, four-wheel drive and genuine GR performance.

When Will the New Toyota Celica Arrive?

Toyota has not officially committed to a launch date for the production Celica.

The appearance of a two-door prototype connected to development of Toyota’s 2027 WRC car has nevertheless increased speculation that the Celica could eventually return.

The 2027 WRC regulations are particularly interesting because rally cars will no longer need to use bodywork directly derived from current production models. That means Toyota could technically choose almost any silhouette for its competition car.

Using a Celica design would nevertheless be an attractive option if Toyota intends to relaunch the nameplate around the same time.

For now, the timing remains unconfirmed, and Toyota has not released final specifications, pricing or production details.

2027 Toyota Celica: What We Expect

If the reported plans become reality, the next-generation Toyota Celica could have a very different character from the last model but remain faithful to the original concept.

Expected model: Toyota Celica Sport
Generation: Eighth generation
Likely positioning: Entry-level GR sports coupe
Likely engine: 2.0-liter four-cylinder
Hybrid: Expected, but not confirmed
Plug-in hybrid: Under consideration
Drive: Four-wheel drive expected
Transmission: Not yet confirmed
Rally connection: Strongly expected
WRC return: Possible from the 2027 season
GT-Four name: Not confirmed
Likely rival: Honda Prelude

A New Celica Could Be Exactly What Toyota’s GR Lineup Needs

The return of the Toyota Celica would represent far more than the revival of a famous badge.

It could give Toyota a sports coupe positioned between the increasingly performance-focused GR Yaris and the more expensive Supra, while providing a direct rival to the Honda Prelude. At the same time, a four-wheel-drive hybrid powertrain would allow Toyota to combine its motorsport heritage with the realities of modern emissions regulations.

Most importantly, the Celica could restore an affordable, relatively attainable Toyota sports coupe to the market.

With the Supra already back, the MR2 seemingly on the way and the GR GT set to become Toyota’s performance flagship, an eighth-generation Celica could complete Akio Toyoda’s vision of bringing the company’s legendary “three brothers” back to life.

For Toyota enthusiasts, that makes the possibility of a new Celica one of the most intriguing developments in the Japanese sports-car world.

Source: Toyota