Toyota’s long awaited mid engined sports car is taking another step forward, with an updated prototype spotted testing at Okayama International Circuit in Japan. The project could eventually revive the iconic MR2, although a new Celica remains a possibility.

The latest prototype, driven by Toyota chairman Akio Toyoda under his Morizo racing alias, features a lower roofline and more conventional sports car proportions than the earlier GR Yaris based development mules. Testing continues through Toyota’s motorsport activities, allowing engineers to refine the car’s handling and performance.

The project draws on experience gained from the GR Yaris M Concept, which competes in Japan’s Super Taikyu endurance series. However, the road going model is expected to be a substantially different proposition.

Power could come from Toyota’s new 2.0 litre turbocharged G20E four cylinder engine. The racing version has reportedly produced up to 500 bhp, while around 400 bhp is expected for the eventual road car. An eight speed automatic gearbox and all wheel drive are also anticipated, although final production specifications remain unconfirmed.

According to prototype drives reported by Carwow and Auto Express, the mid engined layout delivers a more playful character than the front engined GR Yaris, with less understeer and a chassis designed to rotate more readily through corners.

Toyota has also trademarked the GR MR2 and GR MR-S names, adding to speculation about the car’s identity. The FT-Se concept could provide inspiration for its styling, with a low nose, pronounced rear haunches and a compact, driver focused cabin.

However, enthusiasts should not expect a production launch just yet. Toyota has confirmed development of a new mid engined sports car, but its final name, price, specifications and launch date remain unknown.

For European fans, the prospect of a compact Toyota performance coupe with around 400 bhp is certainly intriguing. Whether it ultimately wears the MR2 or Celica badge, the latest prototype suggests the project is continuing to evolve.