Toyota announced a $3.6 billion investment to relocate production of its Tacoma midsize pickup truck from Mexico to its assembly plant in San Antonio, Texas. This significant expansion of the San Antonio facility is expected to add a second vehicle assembly line and nearly double the plant’s size to 2.7 million square feet by 2030. The expansion will boost the plant's annual production capacity from approximately 200,000 to 350,000 vehicles and create around 2,000 new jobs.

The San Antonio plant currently manufactures the Toyota Tundra full-size pickup truck, including a hybrid model, and the Toyota Sequoia SUV hybrid. Toyota had previously moved Tacoma production to Mexico six years ago but plans to maintain some capacity at a separate plant in Guanajuato, Mexico. The move aligns with Toyota’s broader strategy to enhance domestic manufacturing as part of its plan to invest up to $10 billion more in U.S. operations by 2030.

This decision follows the recent announcement that the Trump administration will no longer extend the trilateral trade pact with Canada and Mexico, opting instead for annual reviews of the agreement. Toyota emphasized that this investment supports its commitment to North American production, workforce development, and long-term growth prospects. The company pointed to its ongoing projects at the San Antonio campus, such as a $531 million rear axle plant, as part of its comprehensive manufacturing footprint.

Toyota, employing 48,000 people in the U.S., has invested $8.3 billion at the San Antonio site since 2003. This increased capacity could help the automaker challenge General Motors’ lead in U.S. vehicle sales. Toyota's U.S. sales rose slightly by 0.5% to 1.24 million units in the first half of 2026, while GM’s sales fell by nearly 7%. Toyota's focus on hybrids alongside its new electric vehicle launches is seen as a strategic advantage amid shifts in consumer preferences.