Toyota to invest $3.6B in plant expansion, will shift Tacoma production from Mexico to Texas

Toyota is investing $3.6 billion to expand its San Antonio, Texas, assembly plant, a move expected to create about 2,000 new jobs and bring Toyota Tacoma pickup production from Mexico to the Lone Star State.

The automaker announced Monday that it will build a second vehicle assembly line at its San Antonio campus, allowing the facility to assemble the Tacoma alongside the Tundra and Sequoia. 

As part of the expansion, Tacoma production will gradually transition from Toyota’s Baja California plant in Mexico over the next four years, according to the company. Toyota will continue producing Tacoma pickups at its Guanajuato, Mexico, plant.

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The project will add about 2.5 million square feet to the manufacturing campus, effectively doubling the site’s size by 2030 and bringing Toyota’s total investment in the San Antonio operation to $8.3 billion since construction began in 2003. Toyota previously moved Tacoma production from San Antonio to its Guanajuato plant in 2020.

texas toyota plant

Workers stand by the assembly line at the new rear axle plant at Toyota Texas in San Antonio on March 2, 2026. (Katina Zentz/San Antonio Express-News via Getty Images)

Toyota said the investment reflects its confidence in North America’s workforce, innovation and long-term growth potential. The expanded facility will also incorporate advanced manufacturing technologies designed to increase production flexibility.

The announcement is another major manufacturing win for Texas, which has attracted billions of dollars in industrial investment in recent years as companies cite the state’s business-friendly policies, workforce and available land. Gov. Greg Abbott said the expansion, supported by the Texas Enterprise Fund and JETI program, will qualify for a $20 million state grant and other incentives and reinforces Texas’ position as a leading destination for advanced manufacturing.

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