TOYOTA to Invest $3.6 Billion to Expand Texas Plant, Shift Tacoma Production Back to U.S. Starting in 2030

TOYOTA Motor Corporation has officially approved a major investment plan totaling $3.6 billion to significantly expand its truck plant in San Antonio, Texas — aiming to boost domestic production capacity and reshape its supply chain footprint. The decision was ratified by TOYOTA's Japan headquarters board on July 1 and formally announced on July 6.

This expansion far exceeds earlier disclosures: it is 80% larger than the $2 billion 'Orca Project' filing first reported by Automotive News in May. Upon completion, the San Antonio plant's total area will grow from its current 2.2 million square feet to approximately 4.7 million square feet, adding a new vehicle assembly line with an annual capacity of 150,000 units. In 2025, the plant already produced 197,500 full-size Tundra pickups and Sequoia SUVs.

The project is expected to directly create at least 2,000 new jobs, bringing the facility's total workforce to 3,700; combined with 5,600 employees across 23 on-site supplier facilities, overall employment will rise substantially. Additionally, TOYOTA recently completed a $531 million axle manufacturing plant within the same campus.

According to TOYOTA's official statement, production of the new midsize Tacoma pickup will gradually shift from the company's Baja California, Mexico plant to the expanded San Antonio line starting in 2030. Notably, TOYOTA's separate Tacoma plant in Guanajuato, Mexico remains unaffected and will continue assembling certain trim variants for the U.S. market.

This move is widely seen as a strategic response to U.S. tariff policy. Since the Trump administration reinstated and broadened 25% tariffs on Mexican-made vehicles in 2025, the Tacoma — TOYOTA's third-best-selling model in the U.S. (274,600 units sold in 2025) — has faced sharply rising import costs. TOYOTA's North America operations posted a $1.2 billion operating loss for the fiscal year ended March 31, 2026, with tariff-related impacts projected to accumulate to ¥2.8 trillion JPY (approximately $17.2 billion) over two fiscal years.

Despite these massive tariff expenses, TOYOTA has so far avoided significant price pass-through to consumers: data shows that the average U.S. dealer sticker price for the Tacoma rose only 3.5% year-on-year in June 2026 — slightly above the 3.2% increase for domestically built Tundras.

TOYOTA has not yet clarified the future role of its Baja California plant. Having produced 166,700 Tacomas there in 2025, the facility — leveraging Mexico's extensive network of free trade agreements — may pivot toward serving European or South American markets, or take on production of new models destined for the U.S.