The 2026 Toyota GR Starlet may be the most affordable GR.

Toyota’s Gazoo Racing division is reportedly developing a front-wheel-drive model for Rally 4 competition and a road-going version

Currently, the Toyota Starlet nameplate is applied to facelifted models of the Suzuki Baleno and Fronx in South Africa. However, Toyota seems to be preparing for something even more exciting. Rumor has it that a new subcompact model based on the Yaris will be launched in 2026. This may include a Rally 4 specification version and a road-going version of the GR Starlet, which is expected to inspire Toyota’s hot hatchback lineup.

The Toyota Starlet was launched in five generations between 1973 and 1999 and is the predecessor to the Yaris. While Toyota has not announced any revival plans, reports out of Japan suggest the Starlet could make a comeback as a new, more affordable city car.

Revival details and expected specifications

According to Japanese publication Best Car, the reborn Starlet may use the Yaris’ TNGA-B platform but with a smaller footprint. The five-door hatchback is expected to be around 3,850 mm (151.6 in) in length, which would make it 150 mm (5.9 in) longer than the European Aygo X but 90 mm (3.5 in) shorter than the Yaris.

In addition to the standard version, Toyota also plans to develop a two-wheel drive WRC Rally 4 category rally car, as well as a performance-focused GR version. The latter is expected to receive the full GR treatment, with a unique sporty body kit, an upgraded chassis for more responsive handling, and a more powerful engine to improve performance.

Japanese sources say the hot hatchback is likely to be powered by a turbocharged 1.3-litre three-cylinder engine based on the larger 1.6-litre unit found in the popular GR Yaris and GR Corolla. The downsized engine would produce around 150bhp (112kW) and send power to the front axle via a six-speed manual gearbox.

MORE: Toyota’s new 2.0-liter turbocharged engine is rumored to make nearly 600 horsepower

The more compact dimensions and the absence of the GR-Four all-wheel drive system found in its siblings are said to have helped the GR Starlet’s weight drop to 980 kg (2,160 lbs). This would make it around 300 kg (727 lbs) lighter than the GR Yaris, making for a fun-to-drive experience.

Toyota will need to produce 25,000 road-going versions in order to comply with Rally 4 regulations. Best Car Web speculates that the production model will be available in 2026, and the rally car will compete in the 2027 season. The Toyota GR Starlet is expected to be priced between 2.5 million and 2.8 million yen ($17,576-19,686) in Japan, but we have to take these rumors with a grain of salt.

To comply with Rally 4 regulations, Toyota must produce 25,000 road-going versions. Best Car speculates that the production model will be launched in 2026, and the rally car is expected to compete in the 2027 season. The Toyota GR Starlet’s estimated price in Japan is believed to be between 2.5 million and 2.8 million yen (about $17,600 to $19,700 at current exchange rates), although these figures should be treated with caution. In comparison, the upgraded GR Yaris starts at 4.5 million yen, or about $31,700 in Japan.

More projects coming soon

Aside from the Starlet’s revival, Toyota seems to have several interesting projects in the pipeline, some of which are under consideration, like an MR2-like mid-engine sports car with ICE and/or electric power that has been previewed as a concept car, and others that are in active development, like the Supra GRMN and a new compact Land Cruiser SUV designed to challenge the Ford Bronco Sport.

Illustration: CarScoops