Toyota Motor Engineering & Manufacturing North America filed on May 14 for approval to construct a $2 billion manufacturing plant in Texas as it continues to boost its U.S. automobile manufacturing capacity.
The proposed manufacturing facility would be located in Bexar County, with construction slated to begin this year, completion in 2029, and operations beginning a year later, application documents filed with the Texas Comptroller of Public Accounts show.
More than 3,700 people currently work at Toyota Motor Manufacturing Texas, the company’s sprawling 2.2 million square-foot manufacturing site in San Antonio that began production in 2006. Toyota manufactures the full-size Tundra truck and Sequoia sport utility vehicle at the plant, which turned out 197,506 vehicles in 2025.
The proposed manufacturing facility, dubbed “Project Orca,” would be located alongside the existing facility and would create 2,000 new jobs, Toyota’s application to the state noted. Toyota executives said they considered a number of competing sites but ultimately settled on an expansion of its current facilities because of significant financial incentives and operating efficiencies.
“Due to the critical path milestones that must be achieved in order for construction to commence in 2026, Project Orca would necessarily need to be co-located at, or in close proximity to, an existing Toyota manufacturing facility that has (or will have) access to sufficient transportation infrastructure,” the automaker stated.
Project Orca would generate more than $600 million in total annual economic output once manufacturing operations commence, and it would generate as much as $6.3 billion each year in revenue for Toyota, the company said.
Toyota did not state in its application which automobiles will be made at the Project Orca facility once it comes online. Toyota currently operates 10 manufacturing sites in the United States, along with sites in Tijuana and Guanajuato, Mexico, where its popular Tacoma mid-sized pickup is made.
The new facility would help Toyota alleviate the impacts of rising tariff duties, which totaled approximately $8.8 billion (1.4 trillion yen) for the fiscal year ended in March, Takanori Azuma, chief risk officer and chief officer of Toyota’s accounting group, said in an earnings briefing on May 8. As a result, the company’s consolidated operating income decreased by about $23.9 billion (3.8 trillion yen).
Azuma said Toyota will strive to implement longer-term measures to counter its ongoing operational challenges.
“Progress on the business structure transformation that should be pursued from a mid- to long-term perspective remains only partway complete,” he said.
“Therefore, in the current fiscal year, with the aim of returning to a sustainable growth trajectory, we will accelerate related efforts.”
In June 2024, Toyota expanded its footprint in San Antonio with a 500,000-square-foot facility dedicated to producing rear axle assemblies and drivetrain components. That expansion created 400 new jobs, the automaker said.
The most recent expansion plans for the state of Texas are part of Toyota’s planned $10 billion investment in U.S. manufacturing capacity, announced in November 2025. The North American division of the Japanese company is headquartered in Plano, Texas.