The Toyota Celica was a compact sports car produced by Toyota from 1970 until 2006. It was originally engineered as a rear-wheel drive (RWD) coupe that was relatively inexpensive, lightweight, and moderately powered. Consumers found it attractively styled, economical, reliable, and fun to drive. Toyota even raced the chassis—the Celica was celebrated for its rallying prowess, with its first victory in the 1982 Rally of New Zealand. By 1986, the Celica had evolved into a front-wheel drive (FWD) platform, yet it retained much of its original charm.

Toyota began production of the seventh-generation Celica in July 1999, but it had started to lose its luster. Cost-cutting had cheapened the vehicle, and the two available naturally aspirated four-cylinder engines were tuned for efficiency rather than performance. Consumers were also shifting their focus to SUVs and crossovers, causing the sports coupe market to collapse. Toyota sold 52,406 Celica models in 2000 but only 3,113 units in 2005—the last year of the Celica in the US.

Driving enthusiasts and brand loyalists have mourned the loss of the Celica for nearly two decades, but Toyota is more than hinting at its triumphant return. Recently, Best Car asked the manufacturer’s chief technical officer, Hiroki Nakajima, whether or not the vehicle was in development. His (translated) response: “We’re making the Celica.” Nakajima added that the news may have been a bit premature: “To be honest, there is no sign of it right now. However, there are many people within the company who are eagerly awaiting the Celica. So…I wonder if it’s okay to say this in a public forum, but we’re doing the Celica”

Nakajima’s statement understandably set off a feverish dialogue within the automotive community. Much of it centered around speculation about the new vehicle’s appearance, what powerplants will be offered, and when it will appear. Making matters more complex is that while sports cars are enjoying a new revival in the States, they still don’t sell well in Europe—it’s challenging to justify an all-new vehicle in limited markets. Most likely, the new Celica will be right-hand drive for its domestic and Australian markets and left-hand drive for North America (Europe may have to sit this one out).

Most agree that the new Celica will retain its front-wheel drive configuration in standard trims but expect Toyota to offer a higher-performance all-wheel drive variant (potentially using the AWD from the GR Corolla) like the Celica All-Trac AWD available in the US from 1988-93 (those were sold primarily for homologation use in the WRC). On that note, the Celica will likely be fitted with Toyota’s currently in-development turbocharged inline-four engine—the successor to the 2JZ powerplant. The engine, offered in 1.5-liter and 2.0-liter displacements, can develop upwards of 400 hp. And, if fitted with hybrid technology, it could effortlessly develop even more. The gearbox offerings will likely include 6-speed manuals and 8-speed automatics.

The 2005 Toyota Celica GT Hatchback Coupe 2D had a base MSRP of just below $20,000 when it was last in showrooms (the range-topping Celica GT-S Hatchback Coupe 2D was $23,575). Toyota may be targeting the Audi Quattro—both its luxury and performance—with the new Celica, pushing its entry price into the low $40,000 range—it’s unlikely to be a performance bargain like it was in the 1980s.

Toyota’s public relations team doesn’t comment on future products, but industry experts do. When Toyota makes the new eighth-generation Celica official, expect concepts and prototypes to surface as soon as the 2025 Tokyo Auto Salon (taking place in just over a month). Insiders say the all-new Celica will likely be branded as a 2027 model year, meaning it’s still more than a year away. We will keep you posted.