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Toyota to Shift Tacoma Production from Mexico to Texas in $3.6 Billion Move

Published July 8, 2026 at 6:52 PM UTC

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Toyota Motor Corporation has announced a significant $3.6 billion investment to relocate the production of its popular Tacoma midsize pickup truck from Mexico to San Antonio, Texas. This strategic decision involves expanding the existing San Antonio manufacturing facility by adding 2.5 million square feet, effectively doubling its size by 2030. The expansion will include the construction of a second assembly line dedicated to the Tacoma, alongside the current production of the Tundra and Sequoia models. This move is expected to create approximately 2,000 new jobs, increasing the workforce at the San Antonio plant to around 6,000 employees. The transition of Tacoma production from the Baja California plant in Tijuana, Mexico, to Texas is planned to occur over the next four years, with full production in San Antonio anticipated by 2030. Despite this shift, Toyota's facility in Apaseo el Grande, Guanajuato, Mexico, will continue to manufacture the Tacoma for export to the United States, maintaining its role within Toyota's North American production network. This expansion aligns with Toyota's broader strategy to invest up to $10 billion in its U.S. manufacturing operations by 2030, aiming to enhance production capabilities and adapt to changing market conditions. The decision also reflects Toyota's response to evolving trade dynamics and the need for greater supply chain stability, as vehicles imported from Mexico face a 25% tariff, significantly increasing costs for high-volume models like the Tacoma. By moving assembly to Texas, Toyota aims to mitigate these expenses and strengthen its competitiveness in the U.S. market. The expansion is also expected to stimulate the regional economy, reinforcing Texas's position as a manufacturing powerhouse. The state of Texas has supported this development by providing a $20 million grant from the Texas Enterprise Fund (TEF) and additional assistance through the Jobs, Energy, Technology, and Innovation (JETI) program. These incentives underscore the state's commitment to attracting and retaining major industrial investments. Overall, this move signifies a substantial commitment by Toyota to bolster its manufacturing presence in the United States, create jobs, and enhance its operational efficiency in response to evolving economic and trade landscapes.