From the folks who turned a tiny three-cylinder into a 300-hp powerhouse

Over a year ago, Toyota revealed plans for a new family of four-cylinder combustion engines, available in both naturally aspirated and turbocharged versions. Designed with 1.5- and 2.0-liter displacements, these engines aim to be more compact and lighter than current units. While efficiency is the main focus, Toyota isn’t ignoring performance—especially with the 2.0-liter version, which is getting the Gazoo Racing treatment.
This high-performance variant recently debuted in the GR Yaris M concept, a mid-engine hot hatch unveiled at the Tokyo Auto Salon in January. It features a new “G20E” engine mounted behind the driver and paired with an IHI turbocharger, delivering an estimated 400–450 horsepower. But Toyota engineers told Auto Motor und Sport that there’s even more potential: “With a larger turbocharger, more than 600 hp is easily possible.”

That would more than double the output of the current “G16E-GTS” three-cylinder engine found in the GR Yaris, GR Corolla, and Lexus LBX Morizo RR. However, hitting 600+ horsepower in a production car may be difficult due to increasingly strict emissions regulations. A detuned version is more likely—but even figures in the 400–500 hp range would be impressive. In motorsport, the engine could reach its full potential without road-legal constraints.
For comparison, the most powerful production four-cylinder engine currently available is the Mercedes-AMG M139l, which makes 469 hp in the C63 plug-in hybrid. There’s also the ultra-rare Mitsubishi Lancer Evolution X FQ-440 MR, which made 440 hp, though only 40 units were built.
Toyota’s new 2.0-liter engine is being designed for both longitudinal and transverse applications, meaning it can be mounted at the front or rear. This flexibility makes it a likely candidate for upcoming Gazoo Racing models, including potential revivals of the Celica and MR2, and the confirmed next-gen Supra. A new GR86 could also benefit—if it’s in the works.

Toyota has been testing the G20E engine in the GR Yaris M for some time. However, a prototype Lexus IS sedan seen last year was also fitted with one of these new engines, offering a promising soundtrack and hinting at broader use across Toyota’s lineup. Engine boss Takashi Uehara described it as a “totally new engine for car lovers who expect a little something extra.”
One Toyota engineer even hinted at 2JZ-style tunability: “We left enough space between the cylinders so the engine can be bored out considerably.” Another noted that the Yaris M’s wheelbase had to be extended slightly to fit the mid-mounted setup—an indication of the powertrain’s serious performance intent.
Toyota’s new four-cylinder family is part of a wider effort among Japan’s big automakers to keep combustion technology alive. While Mazda continues work on rotary engines and Subaru refines its boxer engines, all three companies are also pursuing carbon-neutral fuels, including synthetic fuel, biofuel, and liquid hydrogen. Hybrid systems remain a key focus across the board.

Despite the global EV shift, Toyota isn’t backing down on combustion. Chairman Akio Toyoda has said he doesn’t believe EVs will ever exceed 30% market share. Yet the International Energy Agency reported that over 20% of global new car sales last year were EVs. BloombergNEF expects EV sales to grow another 25% in 2025, with nearly two-thirds of demand coming from China, followed by Europe and the U.S.