Toyota Shifts Tacoma Production to Texas in $3.6B Expansion

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Toyota Shifts Tacoma Production to Texas in $3.6B Expansion

Toyota is doubling down on U.S. manufacturing with a major Texas investment that will bring production of its bestselling Tacoma pickup closer to home while adding thousands of jobs.

By the numbers: Toyota will invest $3.6B to more than double its San Antonio assembly plant, adding a second production line with capacity for 150,000 vehicles annually. The expansion will create more than 2,000 jobs and bring Toyota's total investment in the Texas facility to $8.3B.

Tacoma production heads north: The expanded plant will produce the Toyota Tacoma alongside the Tundra and Sequoia, with some U.S.-market Tacoma production shifting from Baja California, Mexico, by 2030. Toyota has not said how production will be divided between Texas and its Guanajuato plant, which currently builds all hybrid Tacomas and about half of U.S. Tacoma volume.

Built for flexibility: Toyota says the additional $1.6B will fund advanced manufacturing technology, supplier infrastructure, tooling, and pre-production labor to create a more flexible, future-ready operation.

Part of a bigger U.S. strategy: The Texas expansion is part of Toyota's $10B U.S. investment plan over five years, which also includes nearly $14B for its North Carolina battery plant and manufacturing upgrades in Kentucky and Indiana.

➥ THE TAKEAWAY

Industrial ripple effect: Large-scale manufacturing investments continue to reshape industrial markets across the South. Toyota's expansion will drive demand for suppliers, logistics, and supporting infrastructure well beyond the factory gates.

➥ DFW office leasing rose 13% in the first half of 2026 as demand for premium buildings tightened availability, lifted rents, and left older office markets trailing.

➥ The U.S. government sold a $30M federal property to San Antonio, clearing a key site for the city’s planned $1.2B-plus Spurs arena and downtown entertainment district. 

➥ Houston’s newly completed Langley apartment tower is leasing 134 luxury residences near Rice University, with monthly rents starting at $9,480 and reaching as high as $20,000.

➥ Texas apartment owners are facing growing financial strain as tax law changes, rising operating costs, elevated interest rates, and oversupply push multifamily loan distress higher across the state.

➥ Mitsubishi Corporation (Americas) nearly doubled its Houston office footprint with a 92,000 SF lease at 1100 Louisiana, marking the city’s largest office lease of the second quarter.

➥ A seven-building Houston office campus changed hands as bankrupt Silver Star Properties REIT continues shedding legacy office assets to support its Chapter 11 restructuring.

DFW's office market is becoming increasingly polarized, with high-quality, well-located buildings maintaining strong occupancy while vacancy continues to concentrate in lower-performing properties.

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