The site would be located in Bexar County with a total investment of $2 billion, according to a filing on Friday submitted to the Texas Comptroller of Public Accounts. The forthcoming factory would create 2,000 new jobs, according to the document.
The proposed expansion by the world’s biggest carmaker, which would establish a new assembly line alongside an existing truck factory, is part of a broader trend of global automakers seeking to manufacturing strategies around US trade policy and shifting consumer demand. The move would deepen Toyota’s manufacturing footprint in its largest market at a time when Ford Motor Co., Nissan Motor Co. and other rivals are retrenching.
“With the possibility that the US high-tariff regime could remain in place for an extended period, automakers including Toyota appear to be reassessing production allocation by vehicle model.,” said Bloomberg Intelligence senior auto analyst Tatsuo Yoshida. The new facility could help Toyota further insulate itself by moving production of the Tacoma pickup truck to the US from Mexico, he added.
A US spokesperson for Toyota said it has nothing further to announce at this time, adding that “our production philosophy is to build where we sell and buy where we build.”
“We regularly evaluate our manufacturing footprint to ensure we remain competitive and aligned with customer demand,” the company said in a statement to Bloomberg News. “This reflects our long-term commitment of investing in the North American region, local manufacturing/jobs, and suppliers.”
Construction will begin this year and be completed in 2029, with operations starting in 2030, according to the application.
Kenta Kon, Toyota’s chief executive officer, had already hinted at expansion during an earnings call last week, when he said the key to utilizing production capacity included building new factories.
The proposed site in Texas — dubbed “Project Orca” — encompasses Toyota’s plans to expand US production through the creation of a new production assembly line. Toyota produces two trucks — the Tundra and Sequoia — at its existing plant in San Antonio, Texas. It assembled almost 200,000 vehicles in 2025 and employs around 3,700 people.
Toyota said in November it would invest as much as $10 billion in local projects to boost production, in response to Trump’s 15% tariffs on cars and car parts imported to the US from Japan.
Plans include a $912 million pledge to increase output of hybrid components and vehicles across five states. It said factories in West Virginia, Kentucky, Mississippi, Tennessee and Missouri will see 252 new jobs as a result of the initiative.
