The AE86 was available with a fuel-injected 4-cylinder twin-cam 1587cc 4A-GE engine in Japan and Europe which was also used in the first-generation Toyota MR2 (AW11). This engine had a maximum power output of 130 PS (97kW) and 103ft·lbf (140nm) of torque in standard form. The AE86 came with a 5-speed manual gearbox, and later came with the option of an automatic. The 4A-GE engines used in the AE86 and AW11 were equipped with T-VIS (Toyota Variable Intake System). The AE86 had an optional Limited Slip Differential (LSD).
In North America, a modified 4A-GEC engine was used to comply with California emissions regulations. Power was rated at 112bhp (84kW), and 100ft·lbf (136nm) of torque. It should be noted however that the cost of these emission regulations in a tendency to burn oil, especially when dealing with a older vehicle that has had 2 or more owners.
The AE86 used ventilated disc brakes. The car was equipped with a MacPherson strut style independent suspension at the front and a four-link live axle with coil springs for the rear. Stabilizer bars were present at both ends.