Toyota Hypes New Four-Cylinder Engine: '600 HP Is Easily Possible'

From the same company that made a three-cylinder engine with 300 hp.

New Toyota 2.0-liter engine

Adrian Padeanu

By: Adrian Padeanu

Jun 27, 2025 at 5:32am ET

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It’s been over a year since Toyota announced a new family of four-cylinder combustion engines, to be offered in both naturally aspirated and turbocharged flavors. These upcoming gas engines, planned with displacements of 1.5 liters and 2.0 liters, are said to be smaller and lighter. While efficiency is the primary goal, performance won’t be overlooked. The larger of the two engines is getting the Gazoo Racing treatment, already previewed in the GR Yaris M concept.

The wild mid-engine hot hatch took us by surprise when it debuted as a concept at the Tokyo Auto Salon in January. Sporting the new “G20E” engine mounted above the rear axle, the pocket rocket featured an IHI turbocharger, pushing output to around 400-450 hp. However, German magazine Auto Motor und Sport has now learned from Toyota engineers that there’s potential for much more: “With a larger turbocharger, more than 600 hp is easily possible.”

That would be more than double what the “G16E-GTS” produces in the GR Yaris, GR Corolla, and Lexus LBX Morizo RR with their turbocharged 1.6-liter three-cylinder engine. However, while 600+ hp is technically achievable with a larger turbo, Toyota will likely run into a major obstacle: stricter regulations. It may (and probably will) be forced to detune the “G20E” to reduce CO₂ emissions. However, even an output starting with a “4,” let alone a “5,” would be impressive. In race car applications, an uncorked version could fully exploit the engine’s potential.

The most powerful four-cylinder engine installed in a series-production car is Mercedes-AMG's M139l with 469 horsepower available in the much-criticized C63 plug-in hybrid. An honorable mention goes to the lesser-known Mitsubishi Lancer Evolution X FQ-440 MR, which produced 440 hp. However, it was essentially a tuned car, and just 40 units were ever sold.

Expect to see Toyota's new four-cylinder engine to power many performance cars, as the 2.0-liter is being engineered for both longitudinal and transverse installations. It can sit at the front or rear, making it a possible backbone for Gazoo Racing’s future lineup. Toyota has teased a potential return of the Celica and/or MR2, while also promising that the Supra will live on beyond the current generation. A next-gen GR86 could also be a natural fit, assuming it’s in development.

Toyota told Auto Motor und Sport that it’s been testing the “G20E” in the GR Yaris M for some time. However, we recall sharing a video featuring a Lexus IS prototype over a year ago. The stripped-down sedan was fitted with one of the new engines and sounded highly promising, possibly featuring the most exciting member of the new four-cylinder lineup. At the time, Toyota’s engine boss Takashi Uehara hyped the “totally new engine” as being intended for “car lovers who expect a little something extra.”

Interestingly, one Toyota engineer strongly suggested the “G20E” will be highly tunable (2JZ redux?): “We left enough space between the cylinders so that the engine can be bored out considerably.” Another engineer claimed the Yaris M’s “performance is incredible,” adding that the hot hatch’s wheelbase had to be slightly extended to accommodate the engine mounted behind the driver.

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It’s worth noting that Toyota’s new four-cylinder family is part of a broader initiative alongside two other Japanese automakers to extend the life of combustion engines. Mazda is developing rotary engines as range extenders, while Subaru continues refining its boxer engine. Hybridization is a shared objective, but the trio is also exploring carbon-neutral fuels like liquid hydrogen, biofuel, and synthetic fuel.

Beating a dead horse? Toyota doesn’t think so. In early 2024, Chairman Akio Toyoda said he doesn’t believe EVs will ever exceed a 30% market share. However, a recent International Energy Agency (IEA) study found that over 20% of new cars sold last year worldwide didn’t have a combustion engine. Additionally, BloombergNEF projects EV sales will increase by 25% in 2025. That report also predicts nearly two-thirds of global EV demand this year will come from China, followed by Europe at 17% and the United States at 7%.

Toyota Is Not Giving Up On Combustion Engines:

Toyota Chairman Says a Sports Car Must Have a Gas Engine

Toyota Will Make Fun Cars for a 'Long, Long Time'

Source: Auto Motor and Sport

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