Toyota to invest $3.6 billion to shift Tacoma production from Mexico to Texas

• The investment reverses a 2018 decision to move Tacoma production from Texas to Mexico, coming shortly after the Trump administration opted not to extend its trade agreement with Canada and Mexico
• The expanded San Antonio facility will produce Tacoma trucks alongside the Tundra full-size pickup, Sequoia SUV, and components from a new rear axle plant opening in fall 2025
• Toyota's increased U.S. production capacity could help it overtake GM as America's top-selling automaker, with Toyota sales up 5.2% to 1.24 million vehicles in H1 2025 while GM declined 6.8% to 1.34 million

Toyota Shifts Tacoma Production to Texas with $3.6B Investment

Key Investment Details:

Toyota Motor announced a $3.6 billion investment to relocate Tacoma midsize pickup truck production from Tijuana, Mexico to its San Antonio, Texas manufacturing facility by 2030. The expansion will create 2,000 U.S. jobs, add a second assembly line, and nearly double the plant's footprint from 2.7 million square feet.

Production Capacity:

The investment will increase the San Antonio plant's annual capacity from approximately 200,000 to 350,000 units. The facility currently produces Tundra full-size pickup trucks (including hybrid variants) and Sequoia SUV hybrids. An additional $531 million rear axle plant is scheduled to begin production in fall.

Strategic Context:

This move is part of Toyota's commitment to invest up to $10 billion more than previously planned in U.S. operations through 2030. The announcement follows the Trump administration's decision not to extend its agreement with Canada and Mexico, opting instead for annual reviews. Notably, Toyota reversed its 2018 decision to shift Tacoma production from Texas to Mexico.

Market Implications:

The investment positions Toyota to potentially overtake General Motors as America's top-selling automaker. Through H1 2025, Toyota U.S. sales rose 1.7% to 1.24 million vehicles, while GM declined 6.8% to 1.34 million. Toyota's hybrid strategy is proving advantageous as EV adoption slows, contrasting with GM's heavy EV investment approach.

Toyota has invested $8.3 billion in the San Antonio plant since 2003 and employs 48,000 people across the U.S., reinforcing its long-term commitment to American manufacturing.