Codemasters are indeed working on a follow up to Race Driver: GRID, IncGamers can confirm. 
The news came from an interview we conducted recently with Iain Smith, an associate producer at Codemasters who has worked on Dirt 3 and Dirt Showdown.
When asked about how Codemasters split their racing studio into different projects, Smith told us that a team is currently working on an “undisclosed” game.
Smith: “…on the core game side there’s the Dirt team and an as yet undisclosed videogame team.”
IncGamers: Is that GRID 2?
Smith: [Laughs] No wavering… [Laughs]
IncGamers: I’m hoping it’s GRID 2…
Smith: Yeah, it is. 
Rumours regarding GRID 2’s existence have been flying around for some time, but news that a team is currently working on it means that it has likely been in production for some time. Perhaps a surprise showing at E3 next week is planned?
Image above is from the original Race Driver: GRID.

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