Automaker expands San Antonio plant as it transfers Tacoma pickup production from Mexico
Toyota Motor will invest $3.6 billion to expand its manufacturing campus in San Antonio, Texas, and shift production of the Tacoma midsize pickup truck from one of its plants in Mexico. The investment will create 2,000 new jobs, add a second vehicle assembly line, and significantly increase the facility’s production capacity by 2030.
The announcement forms part of Toyota’s broader strategy to strengthen its manufacturing footprint in the United States while responding to changing market conditions and trade policies.
San Antonio plant set for major expansion
Toyota said the investment will nearly double the size of its 2.7 million square foot San Antonio manufacturing campus and increase annual production capacity from about 200,000 vehicles to 350,000.
The expansion includes the construction of a second assembly line dedicated to Tacoma production. Once completed, the project will reinforce the plant’s role as one of Toyota’s largest manufacturing hubs in North America.
The company has invested $8.3 billion in the San Antonio facility since construction began in 2003 and currently employs thousands of workers across its operations.
Tacoma production moves from Mexico over four years
Toyota confirmed that production of the Tacoma pickup truck will gradually shift from its Tijuana plant in Mexico to Texas over the next four years.
The company clarified that it will maintain its manufacturing operations in Mexico. Tacoma production will continue at its Guanajuato plant, ensuring the country remains an important part of Toyota’s North American manufacturing network.
A company spokesperson said the investment expands Toyota’s production capacity while complementing its broader regional manufacturing strategy.
The decision marks a reversal of Toyota’s earlier manufacturing plans. More than six years ago, the company announced it would move Tacoma production from Texas to its Guanajuato facility in Mexico.
Investment aligns with broader U.S. manufacturing strategy
The announcement comes as Toyota increases its long-term investment plans in the United States.
The automaker said it now expects to invest up to $10 billion more domestically through 2030 than it had previously planned. The move also follows the Trump administration’s decision not to extend its trilateral trade agreement with Canada and Mexico, opting instead for annual reviews of the pact.
Although Toyota has not directly linked the investment to trade policy, the timing reflects a broader trend among manufacturers seeking to expand production within the United States.
San Antonio becomes a larger production hub
The Texas facility already manufactures the Toyota Tundra full-size pickup, including its hybrid version, as well as the Toyota Sequoia hybrid SUV.
Toyota also recently announced a separate $531 million investment in a rear axle manufacturing plant on the same campus, with production expected to begin later this year.
The latest expansion, previously reported under the codename Project Orca, further strengthens San Antonio’s importance within Toyota’s North American manufacturing network.
Toyota Motor North America Chief Executive Officer Ted Ogawa said the investment reflects the company’s confidence in the region’s workforce and long-term growth prospects while reinforcing its commitment to American manufacturing.
Toyota gains ground in the U.S. auto market
The increased production capacity could strengthen Toyota’s position in the highly competitive U.S. automotive market.
The Japanese automaker has steadily narrowed the sales gap with General Motors, helped by sustained demand for hybrid vehicles. According to Cox Automotive, Toyota sold approximately 1.24 million vehicles during the first half of the year, a 0.5 percent increase compared with the same period in 2025.
General Motors, by comparison, reported a 6.8 percent decline in U.S. sales to 1.34 million vehicles over the same period.
Toyota has continued expanding its lineup with new hybrid and all-electric models while maintaining its long-standing leadership in hybrid technology. General Motors has focused more heavily on battery electric vehicles, offering a broad EV portfolio across several brands while maintaining only one hybrid model, the Corvette.
Expansion Strength: Toyota’s long-term North American strategy
Toyota’s latest investment highlights the company’s commitment to increasing manufacturing capacity in the United States while preserving a broader North American production network.
As consumer demand continues to favour pickup trucks and hybrid vehicles, the expanded San Antonio plant is expected to play a central role in Toyota’s future growth strategy, supporting higher production volumes and strengthening its competitiveness in the U.S. market.
Toyota Tacoma trucks on the sales lot at City Toyota on Feb. 28, 2024, in Daly City, California.
Justin Sullivan | Getty Images
Source: CNBC
