Japan’s rumored hot hatches could bring back true driving fun with turbo power, manual gearboxes, and a shot of nostalgia

- Reports from Japan suggest Toyota and Suzuki will unveil new hot hatches in 2026.
- Rumors point to a Toyota GR Starlet and new-gen Suzuki Swift Sport hot hatch duo.
- Both are designed to deliver driver engagement at a more accessible price point.
There’s no shortage of oversized crossovers clogging up city streets, but what the world really needs is more small cars that are actually fun to drive without breaking the bank. Thankfully for enthusiasts, there’s word that two Japanese automakers are gearing up to deliver exactly that: a pair of subcompact, affordable hot hatchbacks focused squarely on driver enjoyment, possibly landing in 2026.
More: Toyota GR Corolla Eyes European Launch In 2026
The cars reportedly in development are the long-rumored Toyota GR Starlet and what could be a next-generation Suzuki Swift Sport. While Toyota and Suzuki have worked closely on several rebadged models in recent years, these two are expected to go their own way mechanically. Based on what’s being reported, they may end up competing head-to-head.
Two Takes on the Lightweight Hot Hatch
At this stage, neither Toyota nor Suzuki has officially confirmed the cars, though Toyota hasn’t exactly been subtle about its intentions to expand the GR brand in just about every direction.
Still, according to Best Car, both models are reportedly in the final stages of development. The Japanese outlet claims the next-gen Swift Sport could debut in spring 2026, with the GR Starlet arriving a few months later in the fall. Both are expected to feature front-wheel drive, turbocharged engines, and chassis tuning aimed squarely at driver engagement.
The Return Of The Starlet
Starting with Toyota’s rumored entry, the new GR Starlet may effectively replace the Toyota Passo, which shares its bones with the Daihatsu Boon. That would make it completely separate from the South African-market Starlet, a rebadged Suzuki Baleno with little to do here.

This new GR-badged Starlet is tipped to get more than just a nameplate. Reports suggest it could feature a full GR-specific treatment, including unique bodywork, suspension, steering calibration, and a dedicated powertrain. Under the hood, a 1.3-liter turbocharged three-cylinder is said to be in the mix, producing around 150 horsepower and paired exclusively with a six-speed manual gearbox.
That setup would position the GR Starlet as the most accessible model in Toyota’s Gazoo Racing lineup, offering a cheaper alternative to the all-wheel-drive GR Yaris. There’s also talk of a rally-spec version built for the Rally4 class, pointing to motorsport ambitions beyond the showroom.
Suzuki’s Answer
On Suzuki’s end, the current Swift Sport is preparing for its exit, with production scheduled to end in November 2025 with the ZC33S Final Edition. This naturally sparked speculation about what’s next, particularly given the debut of a new Swift generation in late 2023.
More: Suzuki Swift Sport Ends Its Run With The ZC33S Final Edition
According to reports, the new Swift Sport could break cover as early as the Japan Mobility Show in October 2025, ahead of its expected market launch in Japan the following year. Under the hood, it’s likely to feature an updated version of the current turbocharged 1.4-liter four-cylinder engine, now paired with a 48V mild-hybrid system.
The outgoing hot hatch delivered 138 hp (103 kW / 140 PS) in its standard form for Japan, while the mildly electrified version sold in Europe and the UK was slightly detuned to 127 hp (95 kW / 129 PS
2025 Suzuki Swift Champions Concept
In recent years, Suzuki has teased performance-oriented concepts like the Swift Cool Yellow Rev and Swift Champions editions. Both offered visual flair like custom liveries, showy wheels, and subtle aero tweaks, but stopped short of real performance upgrades.
If a new Swift Sport is indeed under development, expect an even more aggressive exterior design. This would allow it to be distinguished from lesser, value-for-money oriented versions, following the example of its predecessor.
A potential revival of the Suzuki Swift GTi and Toyota Starlet GT Turbo names from the ’90s sounds like good news for driving enthusiasts still holding out for fun, affordable, ICE-powered cars. If the rumors pan out, here’s hoping these two hot hatches make it beyond Japan and into global showrooms.

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