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It was not until 1976 that Toyota re-enter the motorsports arena, introducing a Toyota Celica GT Liftback as the "Official Pace Car" of the inaugural Long Beach Grand Prix event. Since then, a Toyota has paced every Toyota Grand Prix of Long Beach.Motor Trend magazine honors the 1976 Celica, naming it the "Import Car of the Year." A newcomer to the '76 lineup is the GT Liftback, the first hatchback Celica. With its obvious ponycar influences, these cars are generally known as the "Mustang-back Celicas."

In 1976, the Celica line was enlarged with the addition of the liftback model, available only in GT trim. The GT package included the larger (RA29) 2.2 liter 20R engine, offered sportier handling, higher-grade trim, etc. The liftback model was marketed as a sport-touring type vehicle, offering greater comfort and luggage capacity than the notch-back models. Although there is no "B" pillar in the Liftback, the rear windows do not roll down (as they do in the hardtop coupe).