Toyota was working on a mid-engined GRMN Yaris – report

A wide-body Toyota GRMN Yaris fitted with a mid-mounted turbocharged engine – inspired by Group B rally cars of the 1980s – was once in development, according to a shock report in a Japanese magazine.

Best Car – known for having reliable sources inside Toyota – claims the car giant was planning a special GRMN Yaris with its 1.6-litre turbocharged three-cylinder engine relocated ahead of the rear axle to improve weight distribution.

However, the magazine now claims those plans have been scrapped.

The report says Toyota has put a stop to the mid-engined GRMN Yaris amid concerns the vehicle would be "limited to enthusiasts," and would "lack impact."

Artists for Best Car created a digital illustration of what the wide-body GRMN Yaris may have looked like (top).

The publication claims interest in the GR Yaris may be waning overseas, leading to apprehension over whether there is a market to support a highly specialised and likely expensive version of the model.

MORE: 2022 Toyota GRMN Yaris unveiled, limited-edition hot hatch not coming to Australia

The vehicle was said to be inspired by hot hatches developed in the 1980s for the infamous Group B rally championship – such as the Peugeot 205 Turbo 16, the Renault 5 Turbo, and the MG Metro 6R4 – as well as the Renault Clio V6 of the early 2000s.

While this is believed to be the first time the prospect of a mid-engined GRMN Yaris has surfaced publicly, it's not clear when Toyota made the decision to axe the project.

In January 2022, a Toyota GRMN Yaris was produced, but it was a front-engined limited-edition model fitted with fixed racing Recaro bucket seats, lightweight panels, and a boost to the torque output from the three-cylinder turbocharged engine.

The GRMN Yaris was limited to just 500 vehicles, and only sold to the Japanese market.