Toyota | Invests $28.2 billion to build a plant in Texas, shifting some truck production capacity from Mexico

Toyota Motor announced on Monday (the 6th) that it will spend $3.6 billion (about HK$2,823 million) to build a new factory in Texas, the United States, relocating Mexico truck production to the United States.

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Toyota said the plant in San Antonio covers 2.5 million square feet, is expected to be operational in 2030, and will create 2,000 jobs. Toyota said that after the Texas plant is completed, the mid-size pickup truck Tacoma produced in Mexico’s Baja California will be transferred there, but the Guanajuato plant will remain in production.

Toyota’s existing San Antonio facilities can already produce the Tundra pickup truck and sport utility vehicles (SUVs). The factory site is the planned construction location for the new plant, and a new rear-axle factory covering 500,000 square feet is also expected to start operations in the autumn.

However, Toyota said it remains committed to operations in Mexico, Canada, and the United States, and urged U.S. President Donald Trump to extend the North American Free Trade Agreement, stressing that the deal is crucial for integrated automotive production.

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Texas Governor Greg Abbott said Toyota’s new investment will qualify for the state’s $20 million (about HK$157 million) in grants and other incentives.

A White House spokesperson said Toyota’s new investment is one of many outcomes driven by the Trump administration’s tariff policy, regulatory easing, and tax-cut measures. Trump has continued to pressure automakers to move vehicle production back to the U.S., and to raise tariffs on vehicles, steel, aluminum, and parts.

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