Toyota’s $531 million rear axle production plant in San Antonio is nearing completion, bringing the automaker closer to launching a major new component manufacturing operation in Texas.
The 500,000-square-foot facility is being built at Toyota Motor Manufacturing Texas on the city’s South Side. It will have capacity to produce up to 500,000 rear axles annually and is expected to create 411 production and maintenance positions.
Toyota announced the investment in 2024 and broke ground later that year. Construction has progressed from structural work into equipment installation and production preparation, with trial production targeted for fall 2026 and commercial operations expected in early 2027.
Construction Nears the Finish Line
Major structural work on the facility has progressed, allowing Toyota to shift its focus toward installing and integrating the equipment needed for production.
The plant includes automated systems, machining and welding lines, and final assembly areas designed to support high-volume axle manufacturing.
With the facility nearing completion, Toyota is preparing for the next stage of the project: trial production. The company is targeting fall 2026 for initial production runs before moving toward commercial operations in early 2027.
At full capacity, the facility is expected to manufacture approximately 500,000 rear axles annually for Toyota’s North American vehicle operations.
Expanding Toyota’s San Antonio Supply Chain
The new facility will bring production of a major vehicle component into Toyota’s Texas manufacturing network.
Its location alongside the existing San Antonio assembly operation will allow Toyota to integrate axle manufacturing more closely with its vehicle production activities.
Toyota’s San Antonio plant currently produces the Tundra pickup and Sequoia SUV. The new facility expands the campus beyond vehicle assembly and into large-scale component manufacturing.
A $531M Plant Within a Larger Toyota Expansion
The rear axle facility is also part of a much larger transformation underway at Toyota’s San Antonio campus.
In July 2026, Toyota announced a separate $3.6 billion expansion that will add a second vehicle assembly line, about 2.5 million square feet of additional manufacturing space and more than 2,000 jobs.
The larger investment will support additional truck production and extend Toyota’s manufacturing expansion in San Antonio through 2030.
The $531 million axle project remains a distinct investment, but its completion will coincide with the early stages of this broader campus expansion.
San Antonio’s Manufacturing Momentum
Toyota’s investment adds to San Antonio’s growing manufacturing base.
The automaker has operated its Texas plant in the city for more than two decades, establishing San Antonio as an important center for Toyota truck and SUV production.
Other major manufacturers are also expanding the region’s industrial footprint. Industrial Electric Mfg. (IEM), for example, announced a $200 million power distribution manufacturing campus at Brooks in August 2026, with up to 3,000 jobs planned by 2030.
The projects are adding new manufacturing capacity across automotive components, power distribution equipment and other industrial sectors.
What Comes Next
With construction nearing completion, Toyota’s focus is shifting toward final equipment integration, testing and production preparation.
The company is targeting fall 2026 for trial production, followed by commercial operations in early 2027.
Once operational, the facility will become a major component manufacturing operation within Toyota’s expanding San Antonio production network.
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Texas-Mexico Automotive Supercluster
Bexar County Commissioners in 2023 approved an initiative to develop a Texas-Mexico Automotive Supercluster to compete with other major automotive manufacturing regions.
Currently, TMMXT now covers 2.2 million square feet. Toyota has invested $4.2 billion in the plant to date.
Toyota Rear Axle Production Plant: Project Factsheet
Project Overview
Project: New Rear Axle Production Plant
Location: Toyota Motor Manufacturing Texas (TMMTX), South Side, San Antonio
Total Investment: $531 million
Parent Company: Toyota Motor Corporation
The New Plant Specifications
Size: 500,000 square feet
Production Lines: 5
Welding Robots: 200
Product Variations: 18 different rear axle types
Production Capacity: 500,000 units annually (at full capacity)
Employment Impact
New Jobs Created: 400+
Total Plant Employment After Expansion: 4,000+
Construction timeline for the new rear axle production plant
Construction Start: 2024
Production Start: Late 2026
Full Production Capacity: Spring 2027
Production & Distribution
Primary Products: Rear axle assemblies for:
Toyota Sequoia SUVs
Toyota Tundra pickups
And Toyota Tacoma trucks
Distribution:
40% for San Antonio plant use
60% export to Mexico (Baja California and Guanajuato facilities)
Technical Capabilities
In-house production of drivetrain components
Quality control improvements
Streamlined production processes
Reduced lead times
Cost optimization
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The new rear axle production plant in San Antonio
Campus Size: 2,000 acres
Current TMMTX Facility: 2.2 million square feet
Total Toyota Investment in TMMTX to date: $4.2 billion
Strategic Significance
Brings previously outsourced production in-house
Strengthens Texas-Mexico automotive corridor
Enhances San Antonio’s manufacturing capabilities
Creates potential for future expansion
Supports Texas-Mexico Automotive Supercluster initiative
Supply Chain Impact
Relocates production from Midwest supplier
Establishes new role in Toyota’s North American supply chain
Improves vertical integration
Enhances cross-border manufacturing coordination
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