Toyota to build $3.6 billion Texas plant, moving truck production from Mexico

Japanese automaker Toyota Motor Corporation has announced a major expansion of its U.S. manufacturing operations, unveiling plans to invest $3.6 billion in a new truck production facility in Texas while relocating part of its pickup manufacturing from Mexico. The move marks one of the company's largest North American manufacturing investments in recent years.

The new 2.5-million-square-foot production facility will be constructed at Toyota's existing manufacturing campus in San Antonio and is expected to begin operations by 2030. Once completed, the expansion is projected to create approximately 2,000 new jobs, further strengthening Texas' position as a major automotive manufacturing hub.

As part of the investment, Toyota plans to gradually shift production of its popular Toyota Tacoma from its facility in Baja California, Mexico, to the new Texas plant. Company officials said the transition will occur over several years, allowing operations in both countries to continue during the production transfer.

The announcement comes amid changing North American trade dynamics and growing pressure on global manufacturers to expand domestic production within the United States. Recent trade policy developments and evolving tariff discussions have encouraged several multinational automakers to reevaluate their manufacturing strategies across the region.

Toyota emphasized that while it is increasing investment in American manufacturing, it remains committed to maintaining operations throughout Mexico, Canada, and the United States. The company described its North American manufacturing network as an integrated production system that continues to play a vital role in serving customers across the continent.

Toyota North America President and CEO Ted Ogawa said the expansion reflects the company's long-term confidence in the American workforce, manufacturing innovation, and the growing demand for pickup trucks. He noted that the investment will help Toyota improve production efficiency while supporting future vehicle demand.

State officials also welcomed the announcement, confirming that the project will receive financial incentives through Texas economic development programs designed to attract advanced manufacturing investments. Local leaders said the expansion is expected to generate long-term economic benefits for the San Antonio region through job creation, supplier growth, and infrastructure development.

Industry analysts view the investment as part of a broader trend in which global automakers are increasing manufacturing capacity inside the United States while balancing regional supply chains. Despite shifting production of some Tacoma models, Toyota confirmed that its Guanajuato facility in Mexico will continue producing vehicles, underscoring the company's commitment to maintaining a diversified North American manufacturing footprint.

The investment further reinforces Toyota's strategy of expanding local production while adapting to evolving trade policies, supply chain priorities, and growing consumer demand for vehicles built closer to key markets.