- Toyota will invest $3.6 billion to add a second assembly line at its Texas campus.
- Toyota will move Tacoma production from Mexico to the United States over a four-year period.
- Toyota will produce the Tacoma alongside the Tundra and Sequoia.
Toyota has announced that it will invest $3.6 billion in its San Antonio, Texas campus. The automaker will add a second production line to the facility, moving Tacoma production from Mexico to the United States.
The investment will result in Toyota doubling the size of the facility to 5 million square feet, while creating 2,000 new jobs, bringing the workforce there to approximately 6,000. Toyota will move Tacoma production to Texas over four years, with some production remaining in Mexico. Ted Ogawa, President and CEO of Toyota North American, said:
‘By expanding our San Antonio plant, we are deepening our commitment to American manufacturing, creating meaningful and sustainable jobs, while furthering our mission of delivering high-quality vehicles that meet the changing needs of customers today and in the future.’
With the investment, Toyota will manufacture the Tacoma along with the Tundra and Sequoia in the United States. All three vehicles share Toyota’s TNGA-F platform. Toyota also manufactures rear axles at the facility.
It’s been less than a year since Toyota announced it would invest $10 billion in its facilities in the United States over the next five years.
Tariffs, trade agreements, and Toyota
Last year, US President Donald Trump imposed new tariffs on imported automobiles, including a 25 percent duty on vehicles from Mexico. This has affected many automakers, including Toyota, as the President encourages companies to make products in the United States.
Since then, Toyota has announced significant investments in its US operations. In November 2025, the automaker said it would invest $453 million in its West Virginia factory and $204.4 million in a Kentucky facility for hybrid vehicles and other components. Toyota has also invested in its Arizona proving grounds.
Trump also signed a trade deal with Japan that opens the country to US-exported vehicles. Toyota is shipping the Tundra and Highlander to the island nation, and the automaker is warning potential buyers that these American-made vehicles are not up to Japanese standards.
Toyota Tacoma sales continue to rise
The fourth-generation Toyota Tacoma was launched for the 2024 model year. Sales of midsize pickups rose 3.4 percent in June, with Toyota selling 23,158 trucks. It is America’s best-selling midsize truck.
Toyota has sold 143,848 Tacoma trucks so far this year, up 9.9 percent from 2025. The Japanese automaker is on track to sell more than 280,000 units, which would make 2026 the model’s best sales year ever, surpassing 2025’s record of 274,638.
Toyota offers the 2026 Tacoma in two cab configurations and two bed sizes. The cheapest truck is the Tacoma SR XtraCab, which comes with a 6.0-foot bed. Pricing starts at $34,190, including a $1,745 destination charge. The Tacoma range tops out with the Tacoma TRD Pro at $66,395.
Motor1’s Opinion: It makes sense for Toyota to move Tacoma production to the United States. The midsize truck shares architecture with the Tundra and Sequoia that are already produced here.
