Why did Toyota leave IndyCar two decades ago? All you need to know

Toyota opted to draw the curtain on its participation in IndyCar in 2006 following a lengthy partnership with the series. The Japanese manufacturer had been a key presence in the open-wheel racing series for 12 years before announcing it would leave at the end of the 2006 season.

However, Toyota’s exit from the IndyCar series—then referred to as the IRL (Indy Racing League)—was met with a muted yet mixed reaction among series stakeholders. Particularly notable was that the decision came shortly after Chevrolet had also opted to withdraw its status as an engine supplier for the series.

In a statement made by the then-senior vice president of Toyota Motor Sales in the United States, the decision was acknowledged as part of the Japanese manufacturer’s broader strategic direction.

“This was simply a decision to move in a different direction after having our major U.S. motorsports emphasis on open-wheel racing since 1994. Just as our participation in IMSA sports car racing ran its course after 12 years of participation, so has our U.S. open-wheel racing program after 12 years in the IRL and CART,” J. Davis Illingworth said via the Los Angeles Times.

Toyota’s departure from the IndyCar series at the end of the 2006 campaign left fellow Japanese engine provider Honda as the sole supplier for the series. Honda would retain this title until Chevrolet returned in 2012.

Toyota's decision to leave IndyCar after a 12-year association with the series came as the company switched focus on its NASCAR program, and also focused on a more cost-effective approach.

Nearly two decades on, conversations about Toyota’s exit from the open-wheel series have quietly resurfaced amid uncertainty surrounding Honda’s long-term commitment as IndyCar’s engine manufacturer. Whether the famed engine supplier will continue with the series beyond its current agreement with the organizers remains to be seen.

Roger Penske speaks on Honda’s commitment to IndyCar

IndyCar owner Roger Penske, earlier in May, weighed in on Honda’s commitment to the series. The Japanese engine supplier has been rumored to be considering an exit from the open-wheel racing series amid rising engine production costs.

Penske, who took over ownership of the series in late 2019, has largely overseen several technical and structural changes to the racing category, including some related to the engine formula currently in use. Regarding the future of engines and their suppliers, the 88-year-old emphasized his desire to continue the partnership with the existing manufacturers.

Sharing his thoughts in an interview with FOX Sports, the Penske team owner stated:

“We’re doing everything we can to renew the contracts. We're good through ’26, and we want to renew these contracts. We have one or two manufacturers that have also shown interest at this point.”

It’s worth noting that Honda had previously opted out of the IndyCar series. Specifically, Honda left when it was still referred to as the CART series following the 2002 campaign. The Japanese manufacturer, however, made a return ahead of the 2006 season, serving as the sole engine supplier until it was joined at the end of 2011 by Chevrolet.

With Honda now weighing its future in the series beyond 2026 due to the increasing costs of participating in the American series, it remains to be seen whether a new manufacturer could be introduced to replace the Hamamatsu-based team.