Second generation / A40 Series (1978-1981)

The second generation Celica was released for 1978 model year (production began in late 1977), and was again available in both Coupe and Liftback forms. The Coupe was no longer a true hardtop; both Coupe and Liftback had frameless door glass but featured a thick "B" pillar. David Stollery was responsible for its design.^[1] From 1979 to 1981 the Griffith company in the USA offered a Targa style convertible conversion to the Coupe. They were called the SunChaser and had a removable Targa top and a folding rear roof, much like the '67 Porsche 911 soft-window Targa. These were Toyota approved and sold through Toyota dealers. Over 2000 were produced.

In 1978 Toyota began production of the Mark I Toyota Supra in Japan, as the Toyota Celica XX. The year it debuted in the United States and Japan was in 1979. The USA Mark I (chassis code MA46) was originally equipped with a 110 hp (82 kW) 2.6 L (2563 cc) 12-valve SOHC inline-6 engine (4M-E). Simultaneously in 1979, the Japanese Mark I (chassis code MA45) was offered with a 110 hp (82 kW) 2.0 L 12-valve SOHC inline-6 engine (M-EU). Both were the first Toyota engines equipped with electronic fuel injection.^[2]

The second generation Celica can also be broken down into two series of release (known as Series A and Series B). These two Celicas were only distinguishable by appearance - both having the same engine capacity. Series A Celicas (1977-1979) were released with round headlights and chrome bumpers for lower grades. The higher grades such as GT and all US models have black rubber bumpers. The Series B Celica (1980-1981) was released with square headlights and black rubber bumpers and various other 'minor' differences.

Power for North American models was provided by a 2.2 L 20R engine for both ST and GT models. Japan and other markets had 1.6, 1.8, and 2.0 liter powerplants. This new generation offered more safety, power and fuel economy than previous models, and was awarded Motor Trend's "Import Car of the Year" for 1978. Japanese models were ET, LT, ST, SE, XT, GT, and GTV. The GT and GTV have an 18R-G Twincam engine. In late 1978, the GTV was replaced by GT Rally.

In 1980, a four-door version was announced, known as the Toyota Celica Camry. This model was a Toyota Carina with a Celica front end. The Camry was spun off as its own model two years later.

The limited edition "US Grand Prix" GT Liftback was offered in 1980 due to Toyota's connection to the U.S. Grand Prix West in Long Beach, California. For 1981, the North American models were given a bigger engine, the 2.4 liter 22R from the 4Runner and Pickup. To celebrate the Celica 10th Anniversary, the GTA Coupe was released. This was basically a GT Coupe with 3 speed automatic transmission, special color, upgraded sound system and alloys.

There were about 70 different models of 2nd generation Celica ever sold in Japan, although at one time there were 49.