HOUSTON – Toyota is making one of its largest manufacturing investments in Texas, announcing Monday it will spend $3.6 billion to expand its San Antonio assembly plant and move production of its popular Tacoma midsize pickup truck from Mexico.
The investment is expected to create approximately 2,000 jobs and nearly double the size of Toyota’s San Antonio manufacturing campus by 2030.
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According to the automaker, the expansion will add a second vehicle assembly line and increase the plant’s annual production capacity from about 200,000 vehicles to 350,000.
The move is part of Toyota’s broader plan to invest up to $10 billion more than previously announced in U.S. operations through 2030.
Tacoma production returning to Texas
Toyota said production of the Tacoma currently built at its Tijuana, Mexico, plant will gradually shift to San Antonio over the next four years.
The company emphasized it is not exiting Mexico. A Toyota spokesperson said the automaker will continue manufacturing Tacomas at its plant in Guanajuato while maintaining its broader operations in the country.
The announcement comes just days after the Trump administration said it would not extend its trilateral trade agreement with Canada and Mexico, opting instead for annual reviews of the pact.
What it means for Texas
The investment further cements Texas as one of Toyota’s largest manufacturing hubs and is expected to deliver a significant economic boost to the San Antonio region.
The expansion will:
- Create approximately 2,000 new manufacturing jobs.
- Increase annual vehicle production by about 150,000 units.
- Add a second assembly line to the San Antonio campus.
- Nearly double the size of the existing 2.7 million-square-foot facility by 2030.
- Support additional suppliers, logistics companies and businesses that serve the automotive industry.
Toyota currently builds the Tundra full-size pickup, including its hybrid model, and the Sequoia hybrid SUV at the San Antonio campus.
Earlier this year, the company also announced a $531 million investment in a rear axle manufacturing plant on the property that is expected to begin production this fall.
A shift in manufacturing strategy
The announcement marks a significant reversal from Toyota’s earlier manufacturing plans.
More than six years ago, the automaker said it would move Tacoma production from Texas to its plant in Guanajuato, Mexico. Monday’s announcement shifts part of that production back to San Antonio as Toyota expands its U.S. manufacturing footprint.
Toyota Motor North America CEO Ted Ogawa said the investment reflects the company’s long-term confidence in American manufacturing.
“Toyota’s continued investment in North America is a testament to our confidence in the region’s workforce, innovation and long-term growth potential,” Ogawa said in a statement. “By expanding our San Antonio plant, we are deepening our commitment to American manufacturing, creating meaningful and sustainable jobs, while advancing our mission to deliver high-quality vehicles that meet the changing needs of customers today and into the future.”
The expansion is expected to be completed by 2030.