Toyota’s Chief Technology Officer Hiroki Nakajima has revealed that the upcoming four-cylinder engine lineup from Toyota is set to be a “game changer.” The new engines, with 1.5- and 2.0-liter displacements, are being optimized for electrification while still focusing on performance. The 2.0-liter turbo engine, tested in a stripped-out Lexus IS last year, is a testament to this commitment to fun driving experiences.
At the 2025 Tokyo Auto Salon, Toyota showcased the 2.0-liter turbo engine in a mid-engine test mule based on a GR Yaris platform. While the exact output figures were not disclosed, Nakajima hinted that the engine could potentially produce over 400 horsepower. During the Multipathway Workshop last May, Car Watch learned from Nakajima that the target output is 400 PS, equivalent to 394 horsepower, with the potential for even more power.
The 2.0-liter turbo engine with more than 400 hp is not entirely groundbreaking, as other manufacturers like AMG have similar powertrains. However, Toyota plans to offer a lesser version of the engine with a projected output of 296 hp and 400 Nm of torque. In race cars, the unrestricted version of this engine will exceed 600 hp. This new engine can be adapted for both transverse and longitudinal installations, hinting at its versatility across Toyota’s lineup.
It is speculated that the “G20E” engine will play a crucial role in Toyota’s future sports car offerings, potentially powering the next-generation Supra or other revived nameplates like the Celica and MR2. Positioned above the existing three-cylinder 1.6-liter unit, the 2.0-liter engine could also find its way into Lexus models, expanding its application beyond Toyota’s lineup.
Lexus, on the other hand, is rumored to be working on a high-performance car of its own with a twin-turbo V-8 engine, possibly named the “LFR.” Additionally, Lexus is exploring an electric successor to the iconic LFA supercar, as showcased by the Electrified Sport concept.
Despite the shift towards SUVs in the automotive industry, Toyota remains committed to catering to enthusiasts with its sports car offerings. The Gazoo Racing division aims to compete with the likes of Mercedes-AMG, Audi Sport, and BMW M, potentially at a more accessible price point. Meanwhile, Lexus will continue to target the higher-end performance segment, ensuring a diverse range of offerings from the Toyota family.
