Toyota detailed plans investing $912 million to boost hybrid component and vehicle output across five American states.
The move forms part of a broader $10 billion commitment over the next five years announced by the world’s biggest carmaker.
Factories in West Virginia, Kentucky, Mississippi, Tennessee, and Missouri will add 252 new jobs from the initiative.
The largest chunk directs $453 million toward the Buffalo, West Virginia, plant to increase four-cylinder hybrid-compatible engine assembly.
Georgetown, Kentucky, gets $204.4 million for similar four-cylinder hybrid engines.
Blue Springs, Mississippi, receives $125 million to expand Corolla production to include hybrid models.
Tennessee and Missouri facilities also receive funding for hybrid component production. Most investments should be completed by 2027.
The investment underscores Toyota’s bet that hybrids will dominate American sales in the near term as consumers baulk at high EV prices following tax credit elimination.
Ford and General Motors, along with other domestic carmakers, have already scaled back EV ambitions, revisiting hybrid strategies to meet shifting demand and emissions targets.
Toyota now offers hybrid-only versions of the RAV4 compact crossover and Camry sedan in America, thanks to robust demand for gasoline-electric powertrains delivering better mileage.
The company commands over 51% hybrid market share through the third quarter this year, according to Motor Intelligence data.
Kevin Voelkel, Toyota Motor North America senior vice president of manufacturing operations, said customers are embracing Toyota’s hybrid vehicles.
American manufacturing teams are gearing up to meet that growing demand.
The Japanese manufacturer has long advocated for a measured approach, selling a broad range of vehicle options for different markets.
Its philosophy centres on building where they sell, with North American manufacturing sites assembling roughly 76% of vehicles sold domestically.
President Donald Trump announced last month that Toyota planned a large-scale investment.
Trump has been pushing to shift more production to America, imposing punitive tariffs on many car parts and vehicles sourced from abroad.
Toyota imported about half the vehicles it sold in America last year, mostly from Canada and Mexico but also including some 281,000 units made in Japan.
The new investment strengthens the carmaker’s American foothold whilst helping navigate Trump’s litany of tariffs on vehicles and auto parts.
