Toyota is deep into the development of its new performance-focused 2.0-liter turbocharged engine. According to a recent statement from a company executive, the plan is to incorporate a hybrid or plug-in hybrid system in order for the unit to meet emissions regulations. The company is still developing the powerplant in the mid-engined GR Yaris M concept car that's racing in Japan's Super Taikyu series.Gazoo Racing marketing manager Mikio Hayashi recently shared an update on the project with Auto Express:"[The company is] making this car better every day. All the knowledge and feedback through training this car in motorsport — it’s going to be translated into something else in a road car or mass production car in the future, possibly. We are continuing this path."-Mikio Hayashi, Gazoo Racing marketing manager, per Auto Express. Toyota's New Engine ToyotaWhile we don't yet know specifics about the new engine, such as its bore and stroke dimensions or the valvetrain layout, a few details are already available. The powerplant reportedly goes by the internal name G20E and makes somewhere between 400 and 450 horsepower in the current tune. However, the mill is allegedly capable of producing upwards of 600 hp by using a larger turbocharger.While Toyota is developing this engine on the race track, its future is on the street. While nothing is official yet, the company is strongly suggesting that the powerplant would go into the revived Celica. Unlike the mid-engined GR Yaris M concept, all signs point to the new Celica having a front-mounted powerplant and all-wheel drive. There will also be a competition version with boxy fender flares and a tall wing competing in the World Rally Championship starting for the 2027 season. And A New MR2, Too? ToyotaIn addition to the revived Celica, there are ongoing rumors of a new Toyota MR2 powered by this engine. When asked by Auto Express about the return of the moniker, which stands for "Mid-ship Run-about 2-seater," Hayashi said with a smile: "Thank you for your suggestion."Like every previous iteration of the MR2, a new one would almost certainly have a mid-mounted engine. Because Toyota is already using this layout on the GR Yaris M race car, it seems like a natural extension of the idea to apply the powertrain to a new MR2. There are even rumors that the vehicle might have all-wheel drive, whereas all previous generations have been solely rear-wheel drive. In addition, the designers are allegedly taking styling cues from the heavily angular FT-Se concept (pictured above) for this project.However, the company's execs are keeping far quieter about this vehicle's possibility than they are discussing the new Celica. It's worth considering that there's a much larger market for a four-seat, all-wheel-drive, turbocharged sport coupe than for a two-seat, mid-engine machine, so it makes sense to prioritize the Celica first.