Japanese automaker Toyota Motor Corporation has announced that its subsidiary Toyota Motor North America will invest $1 billion in its manufacturing plants in Kentucky and Indiana in the US, aimed at expanding production capacity and preparing for future electric vehicle (EV) output.
The investment forms part of Toyota’s broader plan to allocate up to $10 billion in additional investments in the US over the next five years, as the company continues to strengthen its local production footprint.
Toyota stated that the investment supports its “multi-pathway strategy”, which focuses on offering a range of powertrain options, including electrified vehicles, to meet diverse customer needs. The company emphasized its “local production” approach, aiming to produce vehicles closer to end markets while supporting regional economies.
Focus on EV readiness and capacity expansion
According to the company, $800 million will be invested in its Kentucky plant, primarily to prepare for battery electric vehicle (BEV) production and to increase output of key models.
An additional $200 million will be allocated to the Indiana plant, where production capacity for the Grand Highlander model will be expanded.
The new investment is expected to further reinforce the company’s position in the US automotive market while supporting long-term growth and electrification goals.