Toyota plans $3.6 billion Texas expansion for Tacoma production
Toyota says the San Antonio project will add 2,000 U.S. jobs and expand capacity as some Tacoma production shifts from Mexico.
By Hana Yoshida · Markets Reporter
3 min read
Toyota Motor said Monday it will invest $3.6 billion to move production of its Tacoma midsize pickup from Tijuana, Mexico, to its manufacturing campus in San Antonio. The plan matters for U.S. auto manufacturing because Toyota said it will create 2,000 jobs, add a second assembly line and lift the plant’s yearly capacity by 2030.
The company said the project will roughly double the footprint of the 2.7 million-square-foot San Antonio plant. Toyota said the site’s annual output capacity will rise from about 200,000 vehicles to 350,000 vehicles.
The San Antonio campus already builds the Toyota Tundra full-size pickup, including a hybrid version, and the Toyota Sequoia hybrid SUV, according to the company. Toyota has said it has invested $8.3 billion in the plant since the site broke ground in 2003.
Mexico operations will continue
A Toyota spokeswoman told CNBC that the company will keep operating in Mexico while Tacoma production transfers from Tijuana to Texas over the next four years. She also told CNBC that Toyota will continue building Tacoma pickups at its Guanajuato plant in Mexico, though she did not provide further details.
Toyota had confirmed more than six years ago that it would shift Tacoma production from Texas to Guanajuato, CNBC reported. Monday’s announcement reverses part of that earlier production shift by bringing Tacoma work back to San Antonio.
Toyota Motor North America CEO Ted Ogawa said in the company’s announcement that the expansion reflects Toyota’s confidence in North America’s workforce, innovation and long-term growth prospects. He said the San Antonio investment increases the company’s commitment to U.S. manufacturing and adds jobs while supporting vehicle production for customers.
Part of a wider U.S. spending plan
The San Antonio expansion fits into Toyota’s previously stated plan to spend up to $10 billion more than earlier expected in the United States through 2030, according to the automaker. Toyota says it employs 48,000 people in the U.S.
The announcement came less than a week after the Trump administration confirmed it would not extend the U.S. trade pact with Canada and Mexico and would instead conduct annual reviews, CNBC reported. The source did not state that the trade decision caused Toyota’s investment plan.
Toyota also previously announced a $531 million rear-axle plant on the San Antonio campus, with production scheduled to begin in the fall, according to CNBC. Automotive News first reported in May that Toyota was considering an expansion of the San Antonio plant under the code name Project Orca.
U.S. sales race tightens
The additional U.S. capacity could help Toyota compete for the top spot in American auto sales. Cox Automotive forecasts Toyota will narrow the sales gap with General Motors this year as hybrid vehicles gain traction and all-electric vehicle demand slows, CNBC reported.
Toyota’s U.S. sales rose 0.5% in the first half of the year from 2025 to 1.24 million vehicles, according to CNBC. GM reported a 6.8% decline over the same period to 1.34 million vehicles sold.
CNBC reported that Toyota’s sales gains have come as the company introduces new models, including electric vehicles, while continuing to emphasize hybrids, a segment where it has long been a leader. GM has invested heavily in all-electric vehicles; CNBC reported that its only hybrid is a Corvette, while Cadillac and other GM brands offer multiple EVs.
This story draws on original reporting from CNBC.