Toyota’s commitment to the internal combustion engine is gaining serious momentum with the development of a new range of advanced four-cylinder powerplants. Over a year since the initial announcement, the automaker’s upcoming 1.5-litre and 2.0-litre engines are shaping up to be lightweight, compact, and engineered for efficiency without compromising on performance. Among them, the 2.0-litre “G20E” variant has already attracted widespread attention, particularly after its unexpected debut in the striking GR Yaris M concept earlier this year.
Unveiled at the Tokyo Auto Salon, the GR Yaris M made waves with its wild mid-engine layout and aggressive power figures. Positioned just behind the driver, the G20E engine is paired with an IHI turbocharger and currently delivers an estimated 400hp to 450hp. However, Toyota engineers have indicated that this is far from the engine’s full potential. According to technical sources quoted by Auto Motor und Sport, a larger turbocharger could easily push the output beyond 600hp—more than twice the performance of the 1.6-litre “G16E-GTS” unit used in the GR Yaris, GR Corolla, and Lexus LBX Morizo RR.
Despite this potential, regulatory constraints will likely play a significant role in shaping the production-ready output of the G20E. With global emissions regulations tightening, Toyota is expected to dial back the final figures to maintain CO₂ compliance. Even so, a detuned version producing upwards of 400hp or even 500hp would still offer remarkable performance for a street-legal sports car. For motorsport applications, however, the uncorked engine is likely to reach its upper limits and showcase its true capability.
The G20E is being developed with flexibility in mind. Capable of both longitudinal and transverse installations, the engine is designed for versatility, suitable for both front- and rear-engine layouts. This opens up opportunities for Toyota’s Gazoo Racing division to deploy the new powerplant across a wide range of performance models. A revival of classic nameplates such as the Celica and MR2 has already been teased, while Toyota has pledged that the Supra will continue beyond its current generation. A future GR86 could also be a strong candidate to adopt this new power unit, should the model evolve.
Toyota has confirmed that testing of the G20E engine has been ongoing in the GR Yaris M, although development may have started much earlier. More than a year ago, a stripped-down Lexus IS prototype was spotted fitted with what is believed to be one of these new engines, showcasing an exhilarating sound profile and offering a preview of the performance credentials in the pipeline. At the time, Toyota’s head of engine development, Takashi Uehara, described the project as a “totally new engine” designed specifically for “car lovers who expect a little something extra.”
Engineers involved in the project have underscored the G20E’s tunability, suggesting a return to the tuning potential last seen in Toyota’s legendary 2JZ engine. One engineer noted that deliberate space between the cylinders allows for considerable boring out, potentially making it a favourite among tuners. Meanwhile, to accommodate the mid-mounted engine configuration in the GR Yaris M, Toyota engineers were even compelled to slightly extend the wheelbase—an indicator of how serious the carmaker is about performance engineering.
The new engine family is part of a broader initiative spearheaded by Toyota, Mazda, and Subaru to preserve the relevance of combustion engines in a rapidly electrifying automotive world. While hybridisation plays a major role in this strategy, all three manufacturers are actively exploring alternative, carbon-neutral fuels such as liquid hydrogen, synthetic fuels, and biofuels. Mazda is advancing rotary engine technology as a range extender, and Subaru continues its focus on the boxer engine format.
With the G20E, Toyota isn’t just introducing a new engine—it’s making a strong statement about the future of performance and engineering passion in an era increasingly defined by electrification. Whether powering the next GR sports car or breaking new ground on the track, the G20E promises to be a cornerstone of Toyota’s combustion future.
