Toyota Invests $1B More to Expand U.S. Production of EVs and Hybrids

Toyota Motor Corporation announced a $1 billion investment in its U.S. manufacturing plants to boost production capacity for battery electric vehicles (BEVs) and hybrid electric vehicles (HEVs). Of this amount, $800 million will go toward its assembly plant in Kentucky to prepare for the launch of two new models in 2028—a brand-new all-electric vehicle and a three-row large SUV. An additional $200 million will be invested in its Indiana plant to expand production of the Grand Highlander Hybrid SUV. Capacity for the Camry and RAV4 hybrid models will also be increased. This investment marks the second phase of Toyota’s previously announced plan to invest up to $10 billion in the United States over recent years, with a focus on enhancing vehicle manufacturing capabilities. Despite a recent slowdown in U.S. EV demand influenced by policy shifts, Toyota remains committed to its long-term electrification strategy and reaffirmed its “produce where we sell, source where we produce” approach.