Toyota GR Yaris M Concept MR2 Mule Debuts With New 2.0L Turbo Engine

Toyota’s fun side wouldn’t have been reborn without Chairman Akio Toyoda (Morizo), and his latest push is truly unconventional. Toyota Gazoo Rookie Racing (TGRR) decided to move the engine of the GR Yaris from the front to the middle, creating the TGRR GR Yaris M Concept. This Toyota GR Yaris M Concept MR2 test mule has just made its competition debut in the Super Taikyu series and even managed a third-place finish overall in its group, showcasing immense potential.

The project is driven by two major goals: serving as a testbed for a new engine and exploring the feasibility of reviving an iconic mid-engined sports car.

Toyota GR Yaris M Concept — Source: Toyota

Here is a look at the innovative engine and the strong evidence for an MR2 revival.

The G20E Engine: Compact Powerhouse

The mid-engined GR Yaris is a hugely important testbed for Toyota’s new turbocharged 2.0-liter engine, dubbed the G20E. This engine swaps the current GR Yaris’s 1.6-liter turbo-three for an inline-four, with impressive performance targets.

Toyota admits that cooling issues persist with the G20E in the mid-engined layout, but the engine’s performance potential is vast, making it suitable for a wide range of future products.

Mid-Engine Rationale and the MR2 Revival

The core reason for shifting the engine was simple: to build an even better race car and satisfy Chairman Toyoda’s deep abhorrence for understeer—which he famously calls “time to pray to God.” Moving the engine towards the rear fundamentally changes the handling dynamics, providing sharper turn-in and better balance.

This experiment has a clear commercial aim. The Toyota GR Yaris M Concept MR2 is widely expected to be the test mule for the long-rumored MR2 revival, the brand’s iconic mid-engined sports car that ended production in 2007.

Strong Evidence: In late November 2025, Toyota filed trademarks for “GR MR2” and “GR MR-S” in Japan and Australia, the strongest sign yet that development for a fourth-generation model is underway.
The Future: Rumors suggest the next-generation GR MR2 would be mid-engined, all-wheel drive, and powered by the new G20E engine, bringing a truly exciting prospect to showrooms by 2027 or 2028.

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