Toyota’s new 2.0-litre turbo engine: Balancing performance and versatility

Toyota’s new 2.0-litre turbo engine: Balancing performance and versatility

Toyota is raising the stakes in the performance engine market with its latest 2.0-litre turbocharged four-cylinder, part of a new lineup that emphasizes electrification without sacrificing driving excitement. As reported by Motor1, Toyota’s Chief Technology Officer Hiroki Nakajima has described the engine as a “game changer,” promising competitive power output and adaptability across various platforms.

Revealed at the 2025 Tokyo Auto Salon in a GR Yaris test mule, the 2.0-litre turbo engine is designed to deliver at least 400 PS. Toyota has hinted that it may exceed this figure, with torque estimated at 500 Nm. A less powerful variant producing 300 PS and 400 Nm is also planned for broader applications, while a race-specific version could generate over 600 PS.

This performance places Toyota’s engine in a competitive field with Mercedes-AMG’s M139 and Mitsubishi Evo X FQ-440 MR’s 4B11T. However, Toyota’s focus on versatility sets it apart, as the engine can be mounted both transversely and longitudinally, enabling use in a wide range of vehicles.

The new engine is expected to underpin Toyota’s sports car strategy, potentially replacing the BMW-sourced 2.0-litre engine currently used in the outgoing Supra. It could also revive iconic nameplates like the Celica and MR2, further diversifying Toyota’s lineup. While official confirmation is pending, these moves align with Toyota’s commitment to serving performance enthusiasts.

Lexus, Toyota’s luxury division, is also poised to benefit from the new engine. It could serve as an upgrade over the 1.6-litre turbocharged three-cylinder used in the Lexus LBX Morison that was sourced from the GR Yaris and GR Corolla, enhancing Lexus’ sporty offerings.

Lexus is also rumored to be developing a high-performance model, nicknamed “LFR,” powered by a twin-turbo V8 and inspired by Toyota’s GT3 race car. Additionally, an electric successor to the legendary LFA, previewed by the Electrified Sport concept, is in development, showcasing the brand’s dual focus on traditional and electrified performance.

In an era dominated by SUVs and increasingly stringent emissions regulations, Toyota’s decision to invest in sports cars is a bold move. Through its Gazoo Racing division, the company aims to rival performance divisions like Mercedes-AMG and BMW M while potentially offering more accessible pricing. Toyota’s strategy highlights its effort to balance electrification with traditional driving excitement, catering to a shrinking but dedicated segment of performance enthusiasts.

The new 2.0-litre turbo engine represents Toyota’s determination to stay competitive in the sports car market. With its versatility and power potential, it could play a central role in Toyota’s evolving lineup. Whether in a next-generation Supra, a revived MR2, or a racing application, the engine signals Toyota’s commitment to performance, even as the industry moves toward electrification.

As Toyota charts a path forward, its efforts to innovate while honoring its sports car legacy could set a precedent for other manufacturers navigating the shifting automotive landscape.

Jay Dinesh
A car guy with retail experience in the automotive industry and a home mechanic during off days. Jay is living his childhood topgear dreams working with Cars of Malaysia