Toyota announces major investments in factories in Mexico

Anticipating a new sales record this year, Toyota showed its confidence in Mexico by announcing a $1.45 billion investment in plants in two Mexican states.

The Japanese automaker will renovate its factories in Tecate, Baja California, and Apaseo el Grande, Guanajuato. The money will help adjust production of Toyota’s new Tacoma pickup and its hybrid model.

The new investments will also create 1,600 new jobs, Toyota México President Luis Lozano said Thursday, after a meeting with Economy Minister Marcelo Ebrard.

Ebrard confirmed the news in a message on the social platform

The announcement came just days after Donald Trump was re-elected as US president, following a campaign in which he promised to impose tariffs on vehicles made in Mexico.

Ebrard celebrated Toyota’s news and emphasized the importance of creating certainty for investors in a challenging economic environment, El Sol de Acapulco newspaper reported, especially since foreign direct investment plays such a crucial role in the Mexican economy.

What will the Toyota investment bring to Mexico?

Toyota – which has 98 car dealerships in Mexico offering 18 vehicle models – said the investment will not only increase production capacity at the two plants, but also integrate new technologies that optimize resource use and help reduce emissions.

After reporting a 22% sales increase in the first half of the year, Toyota forecast it would surpass 105,000 in combined sales – both combustion engines and hybrid electric vehicles – by 2024, according to El Financiero.

The company sold 58,081 vehicles – 27% of them hybrids – during the first six months of the year, even after forecasting sales of less than 100,000 cars in 2024. The initial forecast was affected by supply issues – which have since been resolved – related to semiconductors and other parts for hybrid vehicles.

Lozano said the latest investment announcement complements investments already made and will bring Toyota’s total investment since arriving in Mexico 22 years ago to $2 billion by the end of 2024.

In Toyota, the relationship of trust in Mexico was reaffirmed with a $1.45 million turnaround that created 1,600 workers to produce Tacoma by 2024, amounting to a $2 million turnaround.

The automotive industry can use an engine to drive. pic.twitter.com/psPFumWdWC

— Luis Lozano (@Llozano_toyota) November 8, 2024

Last year, the automaker invested $328 million in its Guanajuato plant as it overhauled production processes for the new Tacoma hybrid for the first time. In total, Toyota has invested nearly $1.2 billion in the state since starting operations there in 2019.

Last year’s investment made Guanajuato a key player in Toyota’s electrification production strategy, the company said in a June 2023 statement.

The success of Guanajuato’s transition is evident from a study conducted earlier this year by the digital platform Directorio Automotriz.

The report shows that in terms of suppliers, Guanajuato is home to 16 of the 67 suppliers of electromobility and electrification components in the country, and to 18 of the 52 suppliers of raw materials nationwide. Since the beginning of 2023, 13 new investments directly related to electromobility have been realized in Guanajuato.

With reports from El Pais, Reuters, Process, El Sol de Acapulco And El Economista