Toyota shifts Tacoma output to Texas plant

Toyota (TM) is committing $3.6 billion to add a second assembly line at its San Antonio, Texas manufacturing campus. The expansion is designed to accommodate a significant increase in production, centered on shifting a large portion of Tacoma midsize pickup output from Mexico to the United States.

Once the new line is fully operational, the San Antonio plant’s annual output is expected to rise by roughly 150,000 vehicles. The investment is also projected to create about 2,000 new jobs at the campus, underscoring the scale of the manufacturing build-out in Texas.

Toyota (TM) plans to transition Tacoma production from its Baja California plant in Tijuana to the new assembly line in San Antonio over roughly four years. This phased approach is intended to gradually shift capacity rather than execute an abrupt relocation of manufacturing activities.

Despite moving a large portion of Tacoma output to the United States, Toyota will continue to build some Tacoma models at its Guanajuato plant in Mexico. The company is therefore pursuing a partial reallocation of production within its North American footprint, rather than a full exit from Mexican manufacturing.

The San Antonio campus already assembles full-size Tundra pickups and Sequoia SUVs. The new Tacoma line will be integrated alongside these models, expanding the site’s role as a key hub for Toyota’s truck and SUV production in the U.S. market.

This integration is expected to leverage existing infrastructure and expertise at the Texas facility, enabling multiple truck and SUV nameplates to be built on the same campus. The result is a more diversified product mix coming from a single, expanded site.

Multiple reports link Toyota’s decision to move substantial Tacoma capacity to U.S. soil to recent trade-policy pressures. These include U.S. tariffs on imported autos and the administration’s decision not to extend the existing USMCA framework without changes.

The San Antonio expansion is portrayed as a hedge against cross-border trade uncertainty, positioning more production within the United States while retaining a manufacturing presence in Mexico. By spreading output between the two countries, Toyota seeks to navigate evolving trade rules and potential tariff risks in the North American auto sector.