Toyota has now come up with the latest innovation—its 2.0-liter turbocharged engine. It seems to be creating an immense storm within the minds of people owing to its mighty power and diversity. According to Hiroki Nakajima, Chief Technology Officer of Toyota, it is a revolution in the auto world.
With four cylinders, the new powertrain is being touted as Toyota’s new route towards performance mixed with sustainability, and with the overall goal of making electrification but still keeping excitement while driving alive.
A Game-Changer For Toyota’s Engine Lineup
This 2.0-liter turbocharged engine is not just an ordinary engine upgrade. It is part of Toyota’s larger efforts to make electrification a core part of its future powertrains. However, as Nakajima notes, Toyota is not giving up on the performance side of their cars. In fact, the new engine is designed to deliver impressive power figures without compromising on efficiency.
The 2.0-liter engine was installed in a mid-engine test mule based on the GR Yaris and was showcased during the 2025 Tokyo Auto Salon (TAS), creating much buzz among enthusiasts.
Although Toyota hasn’t confirmed horsepower with the new engine, Japanese media reports that it may reach more than 400 horsepower. At the Multipathway Workshop held in May, Nakajima announced that the target of the engine is about 400 PS, or approximately 394 horsepower.
However, there is a possibility that it will be very much more powerful. Nakajima hinted that the engine was likely to lead up to that 400-horsepower mark, and by that fact, one of the powerful four-cylinder engines in Toyota’s history.
Comparing Toyota’s 2.0-Liter Turbo To Competition
While a 2.0-liter turbocharged engine producing more than 400 horsepower sounds hot, Toyota did not break ground here. That accolade has to go to Mercedes-AMG’s M139 engine. That powers “45” models with 416 horsepower. Then comes the infamous and quite polarizing AMG C63, of course, from a variant of the same family. It gives a whopping 469 horsepower, though. At any rate, this new toy for Toyota threatens to challenge and probably beat them.
Besides the high-performance version, Toyota also plans to build a lower performance version of the 2.0-liter engine, expected to produce approximately 300 PS (296 horsepower) and 295 lb-ft (400 Nm) of torque. It is capable of driving Toyota’s future sports cars and racing vehicles with race versions of more than 600 horsepower.
This engine will have the possibility to be mounted transversely as well as longitudinally depending on the car setup, so its applications can go wider.
With this new engine, Toyota is reaffirming its commitment to performance cars, even in an era dominated by SUVs and stricter emissions regulations. The company is poised to take on the likes of Mercedes-AMG, Audi Sport, and BMW M with a lineup of more affordable performance models, thanks to the introduction of the G20E 2.0-liter turbo engine. It will be the base engine for Toyota’s sports cars of the future, such as possible replacements for the iconic Celica and MR2.
Toyota’s Gazoo Racing division is at the forefront of this effort, aiming to provide exciting driving experiences while keeping in mind the sustainability targets. This new engine is likely to find its way into many future Toyota and Lexus models, including possibly the next generation of Supra and Lexus’ future performance models.
The new engine will be positioned above the existing three-cylinder units in models such as the GR Yaris and GR Corolla, further solidifying Toyota’s place as a performance brand.
A New Era For Lexus
Lexus is also looking to step up its game, with plans for high-performance models, including the much-anticipated “LFR.” Although it hasn’t been officially confirmed by name, it’s said to be a twin-turbo V8-powered road car based on Toyota’s new GT3 race car. The LFR may also be seen as an indirect successor to the Lexus LFA icon, as the car may include electrification. This means that Lexus will go to any extent to challenge such high-end models from brands such as Mercedes-Benz, Audi, and BMW.
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