Toyota’s New 2.0-Liter Turbo Engine Makes Big Power

Toyota’s Chief Technology Officer Hiroki Nakajima calls the new four-cylinder engine lineup a “game changer.” The upcoming powertrains have 1.5- and 2.0-liter displacements, and while they’re being optimized primarily for electrification, the fun element isn’t being ignored. At least, that’s the case for the 2.0-liter turbo engine the engineers mounted last year in a stripped-out Lexus IS for testing purposes.

For the 2025 Tokyo Auto Salon, the four-pot was installed in a mid-engine test mule based on a GR Yaris. In the press release, Toyota didn’t disclose the 2.0-liter turbo engine’s output but hinted in an interview with Japanese journalists during TAS that it could make over 400 horsepower. During the Multipathway Workshop held last May, Car Watch learned from Nakajima that the target is 400 PS, which technically works out to 394 hp. However, there seems to be room for more.

At 2025 TAS, Nakajima suggested it could pack an even greater punch. In response to a reporter’s question, he said, “Is it a 400-PS engine?” Of course, that could mean less than Toyota’s initial estimate. However, the original version shown last year already had 400 PS, so we should expect more rather than less. A peak torque of 369 pound-feet (500 Newton meters) was estimated in 2024.

A 2.0-liter four-cylinder turbo engine with more than 400 hp is not a novelty, considering AMG’s “M139” makes 416 hp in the “45”-badged cars. When longitudinally mounted in the hugely controversial C63, the “M139l” produces a massive 469 hp. Heck, even the rare Mitsubishi Evo X FQ-440 MR had 440 hp a decade ago, albeit that car was chock-full of engine mods.

Nakajima told Car Watch that a lesser version of the 2.0-liter turbo engine is planned with a projected output of 300 PS (296 hp) and 295 lb-ft (400 Nm). The unrestricted four-cylinder mill will make more than 600 hp in race cars. This engine can be installed both transversely and longitudinally. Toyota already uses a 2.0-liter turbo four-banger in a sports car via BMW and its B48 engine, although not for long. The current Supra is facing imminent retirement, but the nameplate will continue. It remains to be seen whether the next-gen Supra will feature the “G20E.”

Lest we forget, Toyota has consistently dropped hints about dusting off other sports car nameplates. Now and then, we keep getting signals about the Celica and/or MR2 returning. Logic tells us the “G20E” will be at the core of the company’s sports car lineup. The new engine will be positioned above the three-cylinder 1.6-liter unit found in the GR Yaris and GR Corolla. The “G16E-GTS” also powers a Lexus model, so here’s hoping Toyota’s luxury brand will also use the larger 2.0-liter.

Since we mentioned Lexus, it’s cooking up a fun car of its own, but with a much bigger engine. The “LFR” (name not confirmed) is widely believed to rock a twin-turbo V-8 and serve as a street-legal sibling of Toyota’s new GT3 race car. There’s also an electric indirect successor to the LFA, previewed by the Electrified Sport concept.

Against all odds, Toyota still wants to cater to enthusiasts, even in an SUV-obsessed world and an automotive industry significantly impacted by stricter emissions regulations. Sports cars are a niche segment, but it looks like the Gazoo Racing arm wants to properly rival Mercedes-AMG, Audi Sport, and BMW M. Ideally, it will do so at a lower price, leaving Lexus to fight the higher-ends models from the German trio.