Toyota’s Gazoo Racing division is reportedly working on a front-wheel-drive model for Rally 4 competition, along with a road-legal version
The Toyota Starlet nameplate is currently used for rebadged versions of the Suzuki Baleno and Fronx in South Africa. However, Toyota seems to be preparing something much more exciting. Rumors suggest a new subcompact model, possibly based on the Yaris, could debut in 2026. This might include a Rally 4-spec version and a road-ready GR Starlet, set to energize Toyota’s hot hatch lineup.
The original Toyota Starlet, produced for five generations from 1973 to 1999, was the predecessor to the Yaris. While Toyota hasn’t officially announced a revival, reports from Japan hint that the Starlet could return as a more affordable city car.
Japanese publication Best Car reports that the revived Starlet might utilize the TNGA-B platform from the Yaris but in a more compact form. The five-door hatchback is anticipated to measure approximately 3,850 mm (151.6 inches) in length, which is 150 mm (5.9 inches) longer than the European Aygo X but 90 mm (3.5 inches) shorter than the Yaris.
In addition to the standard model, Toyota is reportedly developing a rally car for the two-wheel-drive WRC Rally 4 category, as well as a performance-oriented GR version. The GR variant is expected to receive a full GR upgrade, including a distinctive sporty body kit, a refined chassis for improved handling, and a more powerful engine to enhance performance.
Japanese sources indicate that this hot hatch will likely be powered by a turbocharged 1.3-liter three-cylinder engine, derived from the larger 1.6-liter unit used in the GR Yaris and GR Corolla. This smaller engine could deliver around 150 horsepower (112 kW) and will likely drive the front wheels through a six-speed manual transmission.
The GR Starlet’s smaller size and the absence of the GR-Four all-wheel-drive system found in its larger counterparts are expected to contribute to its lightweight of 980 kg (2,160 lbs). This makes it about 300 kg (727 lbs) lighter than the GR Yaris, promising a more agile driving experience.
To meet Rally 4 regulations, Toyota needs to produce 25,000 units of the road version. Best Car speculates that the production model will debut in 2026, with the rally version aiming for the 2027 competition season. The estimated price for the Toyota GR Starlet in Japan is between ¥2.5-2.8 million (approximately $17,600-$19,700), though these figures should be viewed with some skepticism. For context, the updated GR Yaris starts at ¥4.5 million, or around $31,700 in Japan.
In addition to reviving the Starlet, Toyota appears to be working on several exciting projects. Some are still under consideration, such as an MR2-like mid-engine sports car with either internal combustion or electric power, which was previewed as a concept. Others are actively in development, including the Supra GRMN and a new compact Land Cruiser SUV aimed at competing with the Ford Bronco Sport.
