Toyota shifts Tacoma production to Texas in $3.6 billion expansion

Toyota Motor North America said it will invest $3.6 billion to expand its San Antonio manufacturing campus and shift most Tacoma production from Mexico to Texas, a move that puts one of the company’s best-known trucks at the center of the reshoring debate.

The project will add a second vehicle assembly line, create over 2,000 new jobs and add 2.5 million square feet to the plant, which Toyota said will double in size by 2030. The new line is scheduled to begin operations in 2030, and the changeover of Tacoma assembly is expected to be phased in over about four years.

Toyota said the expanded campus will build Tacomas, Tundras, Sequoias and rear axles, deepening the role of the San Antonio site in the company’s North American network. The plant first opened in 2003 and has been expanded multiple times since then, turning Toyota Texas into one of the automaker’s most important U.S. manufacturing hubs.

The announcement lands as automakers face renewed uncertainty over U.S.-Mexico trade rules and tariff exposure. For Toyota, moving Tacoma output north of the border reduces reliance on a cross-border production chain that has long tied Mexican assembly to U.S. sales. A prior report said Tacoma production in Baja California suffered intermittent stoppages in 2024 because of technical problems and workforce shortages, underscoring how vulnerable regional supply lines can be even before policy pressure enters the picture.

Toyota said the San Antonio expansion could lift annual production capacity by about 150,000 units. One estimate puts Toyota’s total investment in Texas at about $8.3 billion once the new line is completed, a figure that reflects how much the company has already committed to the state over time.

The shift is likely to be read as both industrial strategy and trade positioning. It adds U.S. jobs and local content while keeping the Tacoma inside Toyota’s North American footprint, but it also shows how production decisions can respond quickly to tariff risk, political pressure and supply-chain disruptions. In that sense, San Antonio is becoming a test case for how far reshoring can go when a global automaker tries to balance cost, capacity and policy uncertainty at once.