In mid-1981, Toyota completely redesigned the Celica Supra as well as the entire Celica lineup for the 1982 model year. In Japan, the Celica XX name continued, and the Celica Supra name continued internationally. Still based on the Celica platform, there were several key differences, most notably the design of the front end and fully retractable pop-up headlights. Other differences were the inline-six rather than four-cylinder engine, as well as an increase in length and wheelbase to accommodate the larger engine. In the home market, cars fitted with the 5M engine were slightly wider, while the 2-litre models remained compliant with the Japanese width regulations, staying under 1,700 mm (66.9 in). The front suspension used Macpherson struts while the rear used a semi-trailing link design with an attachment at the rear differential.[9]

In 1981, Japanese buyers were offered an alternative to the Celica XX liftback bodystyle, called the Soarer coupé, which was now offered at two Japanese Toyota dealership networks called Toyota Store, and Toyopet Store, as the Celica XX was sold at the Toyota Corolla Store. The four-door performance saloon called the Celica Camry was realigned with the Japanese market Carina, and the Chaser performance sedan shared the Celica XX straight six, while in North America the Cressida took on that role.