Key highlights
- The GR Celica Rally1 will compete alongside the next-generation GR Yaris in the 2027 World Rally Championship.
- Toyota is developing two separate rally teams, with both cars expected to deliver equal performance.
- A road-going Celica could feature a mid-engined layout and a new turbocharged engine, but production plans remain unconfirmed.
Toyota has officially confirmed the return of the Celica name, but its first appearance will be on a rally stage rather than in Australian showrooms.
The Japanese carmaker has announced that its new GR Celica Rally1 will compete in the 2027 World Rally Championship (WRC), bringing back one of its most recognisable performance nameplates after more than two decades away from the showroom.
The Celica will be part of a new Toyota Racing team, which will operate separately from Gazoo Racing Toyota. The latter will continue with a next-generation GR Yaris Rally1 rally car.
Both teams will operate under Toyota’s existing rally organisation, with their cars developed at its headquarters in Jyväskylä, Finland.
The GR Celica will be driven by Elfyn Evans, Oliver Solberg and Sami Pajari, while Ott Tänak, Takamoto Katsuta and Kalle Rovanperä will represent the GR Yaris team.
Toyota says both cars will deliver equal power and performance under the WRC’s new technical regulations for 2027. The manufacturer has also completed six days of rally simulation testing with its new prototypes in Finland, with homologation expected to be finalised before the end of 2026.
Read more: Dakar-inspired Toyota HiLux GR Sport could return in 2027
Why the Celica name matters to Toyota
The Celica has a significant history in Toyota’s rally programme, particularly through its high-performance GT-Four versions.
The model helped Toyota establish itself as a serious competitor in international rallying during the 1990s. Carlos Sainz secured two drivers’ world championships with the Celica in 1990 and 1992, followed by Juha Kankkunen in 1993 and Didier Auriol in 1994.
Its return comes as the WRC prepares for a new technical era, with revised regulations designed to make the top Rally1 category more accessible to manufacturers and teams.
Importantly, the 2027 regulations do not require manufacturers to produce a matching road-going model for their rally entries. This means Toyota can bring the GR Celica back to competition without having to launch a new Celica in dealerships.
However, the timing of the announcement has added weight to speculation that a production version could also be in development.
New Toyota Celica could be mid-engined
Toyota has been testing unusual sports car prototypes for some time, with sightings adding to speculation about a possible Celica or MR2 revival.
A mysterious two-door Toyota prototype was spotted testing in Portugal earlier in 2026, while other mid-engined test vehicles have been seen around Japanese race tracks.
Some of these prototypes have used modified GR Yaris bodywork, although their proportions and unusual front-end design suggest a substantially different mechanical package underneath.
Reports from Japan have suggested the production Celica could adopt a mid-engined layout, which would mark a significant departure from previous generations.
The Celica has traditionally used a front-engined configuration, with different versions offering front-wheel drive, rear-wheel drive or all-wheel drive.
A mid-engined arrangement could also allow Toyota to revive elements of the discontinued MR2 sports car, although the company has not confirmed whether the two nameplates will share any mechanical components.
The expected production model has also been linked to Toyota’s new 2.0-litre turbocharged G20E four-cylinder petrol engine. Reports suggest the powerplant could produce up to 300kW in road-going applications, although its final output and application remain unconfirmed.
A six-speed manual and an eight-speed automatic have also been associated with prototype testing. All-wheel drive is another possibility, potentially giving the new model a connection to the old Celica GT-Four.
None of these specifications have been confirmed for a production car.
Will the new Toyota Celica come to Australia?
A revived Celica could give Toyota Australia another performance model to sit alongside the GR86, GR Yaris and GR Corolla.
A turbocharged sports coupe with all-wheel drive would also appeal to enthusiasts familiar with the original Celica GT-Four, particularly those interested in Toyota’s rally heritage.
However, there is still no official confirmation that a road-going Celica will reach production. Toyota has not announced its launch timeline, specifications or pricing, and Australian availability remains unknown.
Even the production model’s final name is uncertain, with previous reports suggesting Toyota could use the Celica Sport badge instead of simply calling it the Celica or GR Celica.
For now, the confirmed return is limited to the WRC, with the GR Celica Rally1 scheduled to make its competition debut in 2027.
Whether that rally car eventually leads to a new Toyota sports car for Australian buyers is the bigger question. Given the growing number of prototypes and the return of the Celica name to motorsport, there are reasons to keep watching.
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