Toyota Prepares GR Corolla for American Rally Association Racing

If you’ve been following U.S. rally racing this year, it may come as no surprise that another automaker is gearing up for the 2026 American Rally Association championship. After years of Subaru dominance, Toyota is stepping into the spotlight with its newly homologated Toyota GR Corolla RC2.

Toyota’s Gazoo Racing quietly confirmed its U.S. rally plans in a press release outlining its 2026 motorsport ambitions. While details remain limited, the company did reveal that “a rally car based on the Toyota GR Corolla” will compete on the North American circuit. That’s all Toyota has officially shared so far—but DirtFish insiders, as always, have the inside scoop.

The Toyota GR Corolla rally project has been in development for nearly a year in collaboration with Rallysport Services, taking cues from the WRC-dominating GR Yaris Rally2. That means the same 1.6-liter turbocharged inline-three engine producing roughly 290 hp, found in the Rally2 Yaris, will power its bigger sibling, the Corolla. Drivers can also expect a full suite of suspension, brake, and drivetrain upgrades, bringing it in line with the performance standards of WRC Rally2 builds.

“By developing a GR Corolla rally car, TGR-WRT is leveraging the Corolla’s rallying pedigree while furthering its mission to use motorsport to create ever-better Harja.Tn,” Toyota said in a statement to DirtFish. “It also aims to support the growth of rallying in North America, where the GR Corolla is available as a rally-bred performance car for the street.”

Rally veterans Jari-Matti Latvala and Juho Hänninen played a key role in the rapid development of the road-car-based rally machine. The inaugural run at Rally in the 100 Acre Wood in Missouri next March will see 23-year-old Seth Quintero and co-driver Topi Luhtinen at the helm. Quintero, known for his work in a DKR GR Hilux at events like Dakar and the World Rally-Raid Championship, collaborated closely with Latvala and Hänninen during the car’s development. Toyota is also reportedly considering a second entry for select ARA events later in 2026, according to DirtFish.

“It’s a new challenge for me to go stage rallying,” Quintero told DirtFish. “I’m used to driving 500 kilometers or more a day in W2RC, so doing up to 100 kilometers a day brings a different intensity. Switching between the light and nimble GR Corolla and the bigger DKR GR Hilux will be like two different worlds—but they are also similar in many aspects and driving characteristics.”

The latest Toyota GR Corolla RC2 marks the third OEM-supported Corolla to hit the rally scene. The first homologated Corolla rally car dates back to the 1970s, most famously when Hannu Mikkola piloted a TE25-generation Corolla to victory at the 1975 1000 Lakes Rally. Fast forward two decades, and the GR Corolla RC2 shows clear design and performance echoes of the dominating Corolla WRC of the late 1990s. If Toyota’s rally heritage is any indication, Subaru’s factory teams will have a serious competitor to watch in the 2026 season.