Toyota has rediscovered its love for fancy cars as the Japanese automaker unveiled Sunday its latest foray in the world of sports racing, the new sporty compact '86'.

A joint project with Fuji Heavy Industries, the new rear-wheel-drive vehicle will mark Toyota's return to the racing world following the retirement in 2007 of the MR-S series.

The 86, which Toyota said got its name from the hugely popular Corolla Levin AE86 that wowed the racing circuit in the 1980s, will be fitted with a power station the company said is the first horizontally opposed boxer engine in the world.

That energy behemoth, the company added, will be complemented by Toyota's in-house D-4S direct injection technology.

The new sports car, Toyota said, will be marketed in Japan as the 'Hachi-Roku' while European customers will get a taste of the sporty compact car via the labeling GT86.

A parallel model, which Fuji will simultaneously issue with the 86 by spring next year, will be known as the Subaru BRZ.

The engineering technology employed on the 86, according to Toyota chief engineer Tetsuya Tada, was a complete departure from the normal emphasis of racing cars, which is "all about the fastest lap times, horsepower and acceleration."

"(This is) an affordable sports car that feels good driving on any road, and that's not just fast on a circuit. There are few sports cars out there like that," Tada told Reuters.

Toyota has yet to disclose 86's likely price tag, but Reuters has reported that its price range hover around the neighborhood of about $33,000 and up, the sticker price it will probably carry in Japanese showrooms, Tada said.

Toyota chief executive Akio Toyoda had decided to push for the launch of 86 ahead its scheduled unveiling this week while at the same time eliminating the usual fanfare that comes with the introduction of new "toy cars."

Instead, the Toyota boss opted to use the Mount Fuji as a backdrop to showcase both the beauty and muscle of 86 as he allowed thousands of spectators witnessed the "fun car" working the Fuji Speedway circuit, with the iconic mountain looming over the event.

"We've made you wait a long time for this ... at long last, here is a car for car lovers," Toyoda was quoted by Reuters as saying in announcing the entry of 86.