Toyota to Invest $1 Billion in Kentucky, Indiana Operations — Update

By Elias Schisgall

Toyota Motor will invest $1 billion in its Kentucky and Indiana manufacturing operations as part of the company's pledge to invest up to $10 billion in the U.S.

The investment includes $800 million to prepare its Kentucky plant for Toyota's second battery electric vehicle, as well as to increase capacity for Camry and RAV4 assembly lines, the Japanese automaker said Monday.

It also will put $200 million toward two plants in Indiana to boost capacity for its Grand Highlander sport-utility vehicle, the company said.

"Toyota's investment in the U.S. is for the long-term, tied to our philosophy of building where we sell and buying where we build," Toyota Chief Operating Officer Mark Templin said.

Toyota's move to invest in its battery-powered lineup comes as the company doubles down on its hybrid vehicles, which are strong sellers in the U.S. and certain other markets. Toyota in November announced a $912 million investment to boost hybrid vehicle production in the U.S.

The two investments are part of the Toyota's November pledge to commit up to $10 billion in its U.S. plants over the next five years. The company also is working on a $14 billion battery plant in North Carolina.

Toyota is the world's top-selling carmaker, selling a record 11.3 million vehicles in 2025 despite U.S. tariffs disrupting the automotive industry. Its exports to the U.S. from Japan rose 14% to 615,000 in 2025.

The company said Monday that it and the Toyota USA Foundation had committed $4 million to the Driving Possibilities education initiative for STEM--that is, science, technology, engineering and mathematics--as well as $400,000 for Eastern Kentucky University's manufacturing engineering program.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

March 23, 2026 13:38 ET (17:38 GMT)