Governor Greg Abbott announced that Toyota Motor Manufacturing, Texas Inc. will execute an expansion at its San Antonio assembly campus, constructing a second vehicle manufacturing line to boost its domestic production capacity. Representing a $3.6 billion capital investment, the project will add 2.5 million square feet of facility space—effectively doubling the plant’s physical footprint—and create 2,000 new jobs by the time it reaches full operations in 2030.
To secure the project over competing sites, the state extended a $20 million grant from the Texas Enterprise Fund (TEF) alongside a $50,000 Veteran Created Job Bonus. The expansion has also officially qualified under the state’s newly established Texas Jobs, Energy, Technology, and Innovation (JETI) program, a corporate incentive framework passed during the 88th Legislative Regular Session to draw capital-intensive manufacturing projects.
Governor Abbott celebrated the landmark agreement, stating, “Texas is where the world builds bigger, and Toyota shows it once more with a $3.6 billion expansion in San Antonio that doubles their factory footprint and creates 2,000 new jobs.”
The investment serves as a cornerstone for a major logistical consolidation within Toyota’s broader North American vehicle production ecosystem. According to official corporate statements from the Toyota Pressroom, the new vehicle assembly line is designed to handle production of the Toyota Tacoma truck.
Over an approximate four-year transition window, Toyota will systematically phase out Tacoma production at its manufacturing plant in Baja California, Mexico, and shift those entire manufacturing pipelines into the newly expanded San Antonio facilities. This move will integrate the Tacoma alongside the Tundra full-size truck and Sequoia SUV models that local workers currently build on-site.
Ted Ogawa, President and CEO of Toyota Motor North America, expressed deep gratitude for the long-standing state partnership, noting that the investment reflects absolute confidence in the Texas workforce, deepens the brand’s core commitment to American manufacturing, and creates highly sustainable career progression opportunities for thousands of regional families.
The development brings Toyota’s total capital investment in its San Antonio facilities to $8.3 billion since the automaker originally broke ground on its 2,000-acre South Texas campus in 2003. The current plant directly employs 6,100 San Antonians, while an additional 23 on-site parts suppliers support 5,600 localized jobs.
San Antonio Mayor Gina Ortiz Jones called the selection a historic recognition of the city’s talent pool, and State Representative John Lujan emphasized that the good-paying jobs will continue to anchor South San Antonio as a premier national hub for advanced advanced manufacturing innovation. Sarah Carabias Rush, President and CEO of the Greater SATX Regional Economic Partnership, added that the successful recruitment win showcases the seamless collaboration between local utility providers, Bexar County, the City of San Antonio, and state economic development programs.