Toyota Adding $500+ Million Auto Parts Manufacturing Expansion to Texas Factory

The world’s largest automaker (by units sold) is increasing its investment in the United States with a $531 million plant expansion in San Antonio, Texas. Toyota’s San Antonio plant currently produces its full-size Tundra and mid-size Tacoma pickup trucks, as well as its full-size Sequoia SUV. Visitors – including school classes – can tour the plant, which houses over 2,500 workers and has seen over $3 billion in investment. The addition will increase the size of the Texas Motor Manufacturing, Texas, Inc. (TMMTX) facility by about 20 percent, expanding it from 2.5 million to 3 million square feet and adding about 400 full-time jobs.

Drivetrain parts will be produced in the expanded factory, helping keep Toyota trucks and SUVs running longer on America’s roads. Toyota has declared that its decision to produce the parts in Texas represents its commitment to investing profits domestically. In 2023, Toyota saw a record net profit of almost $32 billion, giving it plenty of cash to reinvest in its business operations. It is second only to Volkswagen Group in revenue, but sells more passenger vehicles.

Toyota Expansion Doubles Foreign Direct Investment in San Antonio

San Antonio is receiving a double dose of foreign direct investment this spring, with Toyota’s TMMTX expansion coming on the heels of construction equipment manufacturer JCB announcing its own $500 million investment in the area. The combined $1 billion in FDI makes sense when you consider that San Antonio is the fastest-growing major city in the United States; there are likely plenty of available workers to fill the new manufacturing jobs. Of course, the two industrial giants work together on occasion, including new hydrogen fuel cell technology, and the new JCB plant will be situated near TMMTX.

Together, the two industrial firms may add up to 2,000 jobs to San Antonio’s booming economy. In exchange, both companies received tax abatements from San Antonio and Bexar County. Toyota also seeks to have its factory zoned as a “Double Jumbo” Texas Enterprise Zone (TEZ), meaning it receives government subsidies and tax credits for providing jobs in low-income/high-unemployment areas. If the Texas governor’s office accepts Toyota’s application for Double Jumbo TEZ status, the company could be eligible for up to $2 million in tax credits.

Auto Parts is a Major Industry That Complements Automakers

The auto parts industry is a major employer in the United States (and worldwide), with many consumers needing parts to repair damages and wear-and-tear on their vehicles. Over the past decade, the average age of consumer vehicles (cars, SUVs, vans, and light trucks) has steadily increased and is currently at a record high of 12.6 years. With older cars on the road, there is an increased demand for drivetrain parts and other vehicle components. By producing these parts in Texas, Toyota can reduce their cost to consumers by not having to ship them from overseas. These lower costs of auto parts will benefit drivers by allowing them to keep their vehicles running longer.  

With new cars getting more and more expensive, Americans are eager for ways to squeeze more miles out of their existing Toyotas – and the TMMTX expansion will help!

About The Author



Mike leads research on the team, writes, and manages the YouTube channel. He’s been buying products made in the USA for as long as he can remember. It’s in his blood, growing up working in American manufacturing.