Today’s automotive world is seemingly moving rapidly away from performance and fun, with downsizing, electrification, and a push towards crossovers and SUVs rather than sports cars and hot hatches. Some automakers, however, are choosing to buck the trend.Toyota is one of them: not only does it offer the GR Corolla, one of the few hot hatches available in North America today, it is also planning to introduce a new engine, even more powerful than the one at the GR Corolla’s heart. This engine made its debut in a funky concept car last year, and we can’t wait to see which production model it ends up powering. Let’s look back at what we know so far. Big Things Coming: A New, Powerful Toyota Engine Toyota Toyota is building a new engine called the G20E, and it’s shaping up to be even more powerful and exciting than the one currently found in the brand’s hot hatch siblings, the GR Yaris and the GR Corolla. Although its design is based on its G16E predecessor, the new engine is going to be slightly bigger (2.0 liters, rather than 1.6), as well as having one extra cylinder: four, rather than three.Although exact figures regarding the G20E’s power output are still not set in stone, according to Toyota it could be capable of producing up to 450 horsepower. This would enable it to beat the current record holder for most powerful four-cylinder engine: Mercedes-Benz’s M139, which produces 421 hp in the A45 S (and, with hybrid assistance, 470 hp in the C63 S E Performance).Although we’re sure the new engine is going to have a promising future in the Toyota world, so far it has only been used in one car: the GR Yaris M concept. Aside from being showcased at automotive events, this car has also entered the world of motorsport through the Super Taikyu series last year.Toyota One endurance race held in October at the Okayama International Circuit proved to be a crucial test for the G20E, which it passed with flying colors. Toyota’s engineering team spoke to Japanese outlet Car Watch after the race, reporting that “no major problems have been found”.The G20E’s performance on the track seems to be a good sign in terms of its future prospects: it is looking increasingly likely that Toyota will include the engine in a production model in the not-too-distant future. As the GR Yaris M Concept may be a sneak peek at a future MR2 revival, there is a chance a future incarnation of the MR2 will be powered by the G20E engine. What We Have Now: The Record-Breaking G16E-GTS Engine Toyota The G20E engine is building on an existing Toyota engine called the G16E-GTS, which although down one cylinder, has a similar character. The G16E-GTS is a 1.6-liter turbocharged three-cylinder unit, notable for holding a very important record: it is the most power-dense engine ever fitted in a Toyota road car. It produces 187.5 hp per liter, overtaking legendary Toyota engines of the past such as the 2JZ-GTE (109 hp/l) or the 3S-GTE (128 hp/l).Toyota achieved this extraordinary feat thanks to highly advanced design and manufacturing practices. The engine was relentlessly optimized to squeeze out as much power as possible while maintaining compact dimensions. Some of the features that helped it achieve this goal include a single-scroll turbocharger, a compact intercooler, and direct fuel injection.Of course, while power density and performance were the top priorities, Toyota still kept an eye towards reliability, a characteristic that has been associated with its engines for decades. The result was a highly resilient engine that could deliver performance without compromising durability.Toyota The G16E-GTS has been used in three cars from the Toyota family so far. One is the GR Yaris, the homologation special from which the G20E-powered Yaris M Concept was derived. The GR Yaris was introduced in 2020 and is sold predominantly in European markets, alongside its home market of Japan. It is not, however, available in the United States or in Canada, just like its non-GR Yaris sibling.Another is the GR Corolla, the GR Yaris’ counterpart aimed at the North American market. The GR Corolla arrived a little later, being introduced in 2022 and going on sale for the 2023 model year. The third model powered by the G16E-GTS is the performance-oriented Morizo RR version of the Lexus LBX, a crossover SUV primarily sold in Europe and Japan. The Lexus LBX Morizo RR was introduced in 2024. Where The New Engine Has Been Showcased: The GR Yaris M Concept Toyota Although the G20E engine has not yet made its debut in any production models, it has made a very important appearance in a concept car built to showcase Toyota’s vision: the GR Yaris M Concept. This car is based on the GR Yaris, a hot hatch model sold on European markets as a kind of counterpart to the North American GR Corolla. The engine has not just been upgraded, from the Yaris’ original 1.6-liter three-cylinder to the new G20E, it has also been moved from the front to the middle: the Yaris M Concept has a mid-engined layout.The GR Yaris M Concept was built with the world of motorsport in mind. First introduced last year at the Tokyo Auto Salon, the car later competed in Japan’s Super Taikyu racing series. Performance is the key element: Toyota described the Yaris M Concept as having been built with the principle of “driver-first carmaking”.Toyota Aside from the major change on the powertrain front, the Yaris M Concept retains most of the standard Yaris’ styling cues, although Toyota has added GR badging and a striking paint job that includes GR’s signature colors (red, black, and blue). And just in case it wasn’t quite clear what exactly this car is, there is also an “M Concept” decal and a “Toyota Gazoo Racing” one splashed across the bodywork.The GR Yaris M Concept is not just interesting because it offers a more performance-oriented version of the Yaris, it also offers us a clue regarding Toyota’s potential plans for a new MR2. The concept car’s mid-engined layout was not lost on eagle-eyed car enthusiasts, who immediately made the connection with the iconic MR2. Now that the company has announced a successor to the MR2 is definitely happening, it is becoming clear that the GR Yaris M Concept was a vehicle for Toyota to test out the new mid-engine platform. Keeping The Hot Hatch Flame Alive: The GR Corolla ToyotaWhile the upcoming new engine definitely gives car enthusiasts plenty to be excited about, there is already a spicy hot hatch in the Toyota lineup we can buy: the GR Corolla. The GR Corolla was introduced in 2022, going on sale for the 2023 model year. It is primarily oriented towards the North American market, which did not receive the GR Yaris (as the standard Yaris is not sold in the US or Canada). However, the GR Corolla can also be found in a few other regions, including Australia, South Africa, Brazil, and its home market of Japan.For the first three years of its life, the GR Corolla was built in Japan alongside its GR Yaris sibling. However, the North American version of the model is set to be built in the UK from this year onward.Toyota Power comes from a 1.6-liter turbocharged three-cylinder engine, which produces up to 300 hp and 295 lb-ft of torque. Although a six-speed manual transmission was initially the only option available, from the 2025 model year onwards, an eight-speed automatic was also added to the lineup. Choosing this option also gets you Launch Control as standard.As a hot hatch, the GR Corolla is a member of a club whose dimensions are growing increasingly small in the US (and beyond). We hope that, whatever Toyota decides to do with its new engine, it will embody some of the same fun, track-ready character we have already seen in this model.Sources: Toyota