Toyota announces $1.4 billion investment in Mexico for its Baja California and Guanajuato facilities

Toyota has pledged to invest $1.45 billion into its factories in Mexico to renovate its facilities in Tecate, Baja California and Apaseo el Grande, Guanajuato, using the funds to help adapt manufacturing for its new Tacoma pick-up truck and its hybrid model. The carmaker said the investment reaffirms its long-term committment to, and confidence in, Mexico.

Toyota has been active in Mexico under its Toyota Motor de Mexico division for more than two decades, using the country as both a domestic hub and a nearshoring hub for the US. The OEM has 98 dealerships in Mexico offering 18 models, and as well as its facilities in Baja California and Guanajuato, the carmaker has facilities in San Luis Potosí and Ciudad de México.

Its $700m Guanajuato facility, which will receive part of the new investment, began exports of its Tacoma model to the US on short-sea routes through the ports of Veracruz and Lázaro Cárdenas in 2020. 

The trend of nearshoring in Mexico to export to the US has been growing in recent years, but the recent US presidential election placed doubts on the continuation of the trend, as president-elect Donald Trump pledged to increase import tariffs on vehicles made in Mexico. There is also another layer of uncertainty as the US-Mexico-Canada free trade agreement (USMCA) is up for review in 2026. Toyota Motor de Mexico’s senior director of external affairs and trade compliance, Lizette Gracida, previously told Automotive Logistics that the USMCA was successful and suggested more trade policies and agreements like the USMCA could improve logistics further and help separate politics from the supply chain.

Watch: Toyota Motor de Mexico’s Lizette Gracida on collaborating with Mexican authorities

At this year’s Automotive Logistics & Supply Chain Mexico conference, Gracida discussed how geopolitical shifts and the stipulations of USMCA influence nearshoring, stressing the importance of investing in existing brownfield facilities.

Luis Lozana, president of Toyota Motor de México, said that the new investment reaffirms the carmaker’s confidence in Mexico, adding that the automotive industry “must continue to be an engine for development” in the country.

The cash injection follows a 22% increase in sales during the first half of this year for the OEM, and Lozana said it adds to the $2 billion the carmaker has already invested in the country.

”With this announcement, Toyota has achieved an investment of more than $3 billion in Mexico, a country that is essential for the regional competitiveness of North America,” Lozano added. “Certainty and stability are fundamental pillars for the automotive industry to continue being a key driver of national development, generating more and better jobs, developing talent and moving in an orderly manner towards electrification and new mobility challenges.”