Toyota’s mid-engined GR Yaris racing prototype has evolved into a design that more closely resembles a traditional sports car, strengthening speculation that the project could preview a future MR2-inspired production model.

The prototype, known as the GR Yaris M Concept, has been developed and tested for more than 18 months. Toyota has also entered it in several Super Taikyu races in Japan, including a recent event where the latest version appeared with substantially different bodywork.

A major departure from the GR Yaris

Earlier versions of the GR Yaris M Concept retained much of the standard hot hatch’s appearance. Those cars featured widened wheel arches, but their overall shape remained close to the production GR Yaris, with the engine relocated behind the passenger compartment.

The latest race car takes a more pronounced mid-engined sports car form. It shares some front and rear lighting elements with the GR Yaris, but appears to carry over little else from Toyota’s production hatchback. The design also resembles a separate prototype photographed during testing several months ago.

Images shared by CarWatch in Japan show a larger radiator and fan positioned beneath the front hood. On the standard GR Yaris, that area houses the turbocharged 1.6-liter three-cylinder engine, while the M Concept uses a mid-mounted powertrain.

Race-focused rear bodywork

The prototype’s rear section features squared-off, flared wheel arches and enlarged quarter-panel air intakes intended to supply the engine. A fixed rear wing and distinctive diffuser complete the heavily revised bodywork.

While the exterior changes point to the car’s racing purpose, the powertrain remains the more significant part of Toyota’s development program. The company is working on a turbocharged 2.0-liter inline-four for its mid-engined production model, as well as possible future versions of the GR Yaris and GR Corolla.

New 2.0-liter engine remains central to the project

The new four-cylinder is described as more powerful than both the GR Yaris’s 1.6-liter turbocharged three-cylinder and Toyota’s outgoing 2.4-liter turbocharged engine. Road-legal versions are tipped to produce approximately 300 horsepower and 295 lb-ft of torque, or 400 Nm.

Higher-performance variants could reportedly deliver more than 400 hp and 406 lb-ft, equivalent to 550 Nm, although those outputs remain part of the reported expectations surrounding the engine program rather than confirmed production specifications.

Toyota’s plans for the resulting sports car are still unsettled. It remains unclear whether the company will revive both the MR2 and Celica, or bring back only one of those nameplates. The source also does not establish which model the mid-engined project would become.

Whatever production direction Toyota chooses, the vehicle is expected to combine the 2.0-liter turbocharged engine with all-wheel drive and Torsen limited-slip differentials on both axles, following the layout used by the automaker’s flagship hot hatch models.

Transmission details are also unresolved. Toyota’s current eight-speed automatic is one possibility, while a six-speed manual could also be selected. For now, the latest GR Yaris M Concept provides another look at how the company is developing the hardware for a potential new mid-engined sports car.