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Key Takeaways
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Toyota will invest $3.6B to more than double its San Antonio assembly plant and add a second production line for the Tacoma.
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The expansion supports a gradual shift of some US-bound Tacoma production from Mexico to Texas and includes more than 2,000 new jobs.
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The project reflects a broader push by automakers to expand US manufacturing capacity and increase production flexibility.
Toyota is significantly expanding its Texas manufacturing footprint, per Supply Chain Dive. The automaker announced on July 7 that it will invest $3.6B to more than double the size of its San Antonio assembly plant, according to WardsAuto. The project will bring production of the midsize Tacoma pickup to Texas alongside the Tundra and Sequoia, with operations ramping up through 2030.
The investment marks one of Toyota’s largest recent US manufacturing commitments. It also advances the company’s broader plan to increase domestic production capacity and manufacturing flexibility across North America.
Bigger Bet On Texas Manufacturing
Toyota has steadily expanded its manufacturing presence in Texas since opening the San Antonio facility in 2006. The latest investment raises Toyota’s total spending at the site to $8.3B since construction began in 2003.
The company had previously signaled an expansion in May, but the final commitment came in 80% higher than the original estimate. Toyota told WardsAuto the additional $1.6B will fund advanced manufacturing technology, supplier infrastructure, tooling, and pre-production labor. An adjacent rear axle plant announced in 2024 is also nearing completion.
The Details
The expanded facility will feature a second assembly line capable of producing up to 150,000 vehicles annually, according to Toyota. That line will assemble the Tacoma alongside the full-size Tundra pickup and Sequoia SUV.
Toyota plans to shift some US-market Tacoma production from its Baja California, Mexico, plant to San Antonio by 2030. The automaker has not disclosed how production will be divided between Texas and its Mexican facilities. It also has not confirmed whether hybrid Tacoma production will remain at its Guanajuato plant, which currently builds all hybrid models and roughly half of US Tacoma volume, according to WardsAuto.
The project will create more than 2,000 jobs and expand Toyota’s manufacturing campus across its existing South Texas site.
US Auto Manufacturing Keeps Expanding
Toyota’s latest investment fits a broader trend of automakers increasing US production capacity. In November 2025, the company committed to invest up to $10B in US operations over five years.
That initiative also includes $912M for expanded hybrid production and another $1B for manufacturing upgrades in Kentucky and Indiana. Toyota confirmed to WardsAuto that it has now committed more than $5.5B toward that five-year target.
Separately, the company has invested nearly $14B in its North Carolina battery facility, supporting future EV and hybrid production across North America.
Why It Matters
Toyota’s expansion underscores how manufacturers continue investing heavily in US production even as they maintain integrated North American supply chains. Rather than fully replacing Mexican production, the company appears to be adding manufacturing flexibility across multiple facilities.
For industrial real estate, projects of this scale often generate demand beyond the assembly plant itself. Supplier parks, logistics facilities, infrastructure improvements, and workforce housing frequently follow major automotive investments. Toyota’s additional spending on supplier infrastructure reinforces that pattern and could create further development opportunities around San Antonio.
The project also highlights continued confidence in Texas as a manufacturing hub. Large labor pools, available land, and established supplier networks continue attracting long-term industrial investment from global automakers.
What’s Next
Toyota expects the expanded San Antonio facility to be fully integrated into Tacoma production by 2030. The company has not announced when the second assembly line will begin operating or how production volumes will transition between Texas and Mexico during the multi-year rollout.
Investors and industrial developers will be watching for supplier announcements, logistics expansions, and additional infrastructure projects tied to the campus. Toyota may also provide more detail on production allocation as construction progresses and advanced manufacturing systems come online.