Toyota plans $3.6B Texas expansion, moving some Tacoma pickup production from Mexico over four years

Toyota Motor North America said it will invest $3.6 billion to expand its San Antonio, Texas manufacturing campus and add a second vehicle assembly line, a plan that is expected to create about 2,000 jobs. The investment is designed to increase capacity at a site that already produces Toyota’s Tundra and Sequoia, according to the company’s announcement reported by Fox Business.

A key change is production of the Tacoma midsize pickup. Toyota said Tacoma production would gradually transition from its Baja California facility in Mexico to its Texas operation over the next four years, while Toyota will continue producing Tacoma pickups at its Guanajuato, Mexico plant. The company’s stated approach suggests it is shifting a portion of Tacoma output rather than moving all production out of Mexico.

The expansion, also described as adding roughly 2.5 million square feet to the campus, would effectively double the size of the San Antonio facility by 2030, according to the Fox Business report. Toyota also said total investment at the San Antonio operation would reach $8.3 billion since construction began in 2003, the report said.

Toyota’s new line will allow the San Antonio campus to assemble the Tacoma alongside other trucks and sport utility vehicles. The Fox Business story also noted that Toyota previously moved Tacoma production from San Antonio to Mexico in 2020, and the latest plan reverses part of that earlier shift.

Toyota said the decision reflects confidence in North America’s workforce and long-term growth potential, according to the same report. It also said the expanded facility will incorporate advanced manufacturing capabilities, though specific technology details were not laid out in the reporting that was available for this write-up.

Industry watchers have increasingly focused on how automakers manage North American supply chains in response to tariffs, trade rules, and labor and logistics costs. Toyota’s stated move, timed alongside a large U.S. capital project, will likely be read as an effort to increase flexibility and stabilize future inventory flows for dealers serving U.S. demand for the Tacoma.

What remains unclear from the available reporting is the breakdown of how many Tacoma units will shift from Mexico to Texas over the four-year period, which specific Tacoma variants (such as cab and bed configurations) will be assembled in San Antonio, and whether Toyota expects any additional suppliers or parts localization to accompany the production change. Toyota also did not provide, in the coverage reviewed here, a cost and timeline breakdown beyond the broad investment, job estimate, and transition window.

Toyota’s next steps to watch include permitting, construction milestones for the added assembly line, and confirmation of the ramp schedule once the new line is operational. If the transition proceeds as described, it could alter near-term production planning for the Tacoma model and potentially influence dealer availability in the U.S. over the next several years.