The Toyota Celica name is finally making a comeback, and it’s returning to the place where it built much of its legendary reputation: the world of rally racing. After years of rumors about Toyota resurrecting one of its most recognizable sports cars, the Japanese automaker has officially confirmed that a new GR Celica Rally1 will compete in the 2027 World Rally Championship. It’s exciting news for enthusiasts who remember the glory days of the Celica GT-Four, although there’s one important catch. This announcement concerns a purpose-built race car, not the production sports coupe many of us have been hoping to see return to Toyota dealerships.

Toyota is taking an interesting approach to the 2027 WRC season by fielding two separate teams running two different vehicles. The new Toyota Racing team will campaign the GR Celica Rally1, while Gazoo Racing Toyota will continue competing with the GR Yaris Rally1. Both will participate in the championship’s premier Rally1 category under a revised set of technical regulations. The changes allow manufacturers to use different body designs over a common racing chassis, meaning the Celica and Yaris will share essentially identical mechanical hardware underneath. Both will utilize a spaceframe chassis and turbocharged 1.6-liter four-cylinder engines, with the main differences coming from their exterior designs.

Toyota isn’t holding back on the driving talent, either. Newly crowned 2026 World Rally Champion Elfyn Evans will lead the GR Celica team alongside Oliver Solberg and Sami Pajari. Meanwhile, the GR Yaris squad will feature returning rally champions Ott Tänak and Kalle Rovanperä, along with Takamoto Katsuta. Toyota is preparing to enter as many as six factory cars at individual rallies, giving both teams an opportunity to compete for victories. The company has already been testing its next-generation rally machinery in Finland, with additional development and homologation work scheduled before the 2027 season begins. Bringing back the Celica name with such a strong driver lineup certainly suggests Toyota wants to make a memorable return.

For longtime Toyota enthusiasts, the Celica’s return carries plenty of significance. The nameplate enjoyed tremendous success in international rally racing during the late 1980s and early 1990s, particularly with the legendary all-wheel-drive Celica GT-Four. Carlos Sainz won World Rally Championship drivers’ titles behind the wheel of a Celica in 1990 and 1992, followed by additional championships for Juha Kankkunen and Didier Auriol in 1993 and 1994. Those victories helped establish Toyota as a serious force in motorsports while giving the road-going Celica a performance reputation that enthusiasts still appreciate today. Seeing the name return to the rally stages more than three decades later feels like a fitting tribute to that history.

The bigger question, of course, is whether Toyota will finally give us a new street-legal Celica. According to reporting from Car and Driver, Toyota is continuing development of future sports car platforms and powertrains, although a production Celica could still be several years away. One possibility involves Toyota’s upcoming mid-engine architecture, which has also been linked to a potential MR2 revival. Another possibility is a more traditional front-engine configuration that better reflects the Celica’s heritage. Toyota is developing a new turbocharged 2.0-liter four-cylinder engine, known as the G20E, that could eventually produce more than 400 horsepower in certain configurations. However, none of those specifications have been officially confirmed for a road-going Celica, and the rally car’s arrival doesn’t necessarily mean a showroom version is imminent.

From our perspective, we’re simply glad to see Toyota continuing to invest in enthusiast-focused vehicles, particularly as the Supra’s current generation comes to an end. Between the GR86, GR Corolla, and the company’s ongoing development of new performance engines, Toyota has demonstrated that it still sees value in building cars for people who genuinely enjoy driving. A modern Celica would make an exciting addition to that lineup, especially if Toyota manages to capture some of the character that made the original GT-Four models so memorable. The GR Celica Rally1 might be the first step toward bringing the nameplate back into the spotlight, but we’ll be watching closely for any indication that a production sports car is following. For now, having the Celica back in world-class rally competition is a pretty exciting development all by itself.