Toyota Motor Manufacturing North America (TMNA), the North American manufacturing subsidiary of Toyota Motor Corporation, announced this week that it will invest an additional 88 million USD in its plant located in Buffalo, West Virginia. With this investment, Toyota’s cumulative investment in the Buffalo plant is expected to exceed 2.8 billion USD.
Established in 1996, the Buffalo plant produces core components such as engines and transmissions used in Toyota and Lexus vehicles. The new investment will fund the construction of an assembly line for next-generation hybrid transaxles, with production scheduled to begin in the second half of 2026. Toyota explained that hybrid transaxles are key components that efficiently manage power delivery between the engine, electric motor, and wheels.
Despite increasing pressure from recent changes in U.S. import tariff policies, Toyota is continuing to strengthen its manufacturing presence in North America. Currently, Toyota directly employs approximately 50,000 people across 11 production facilities in the United States.
This additional investment is seen as part of Toyota’s broader global electrification strategy and its initiative to reinforce manufacturing bases in the United States. Recently, the U.S. government has adopted more protectionist policies, including a 100% tariff on electric vehicles and batteries imported from China. In response to such conditions, Toyota is moving to increase its local production in North America, aiming to minimize risks and localize the hybrid vehicle supply chain.
Notably, Toyota continues to pursue a hybrid electric vehicle (HEV)-focused strategy rather than a rapid shift to battery electric vehicles (BEVs). While major U.S. automakers like GM and Ford are slowing down their EV investments, Toyota is doubling down on securing steady demand for hybrids. In fact, as of the first quarter of 2025, Toyota’s global sales of electrified vehicles increased by 21%, with hybrids accounting for over 90% of that total.
The investment also holds significance from the perspective of labor market and supply chain stabilization. Considering U.S. regulations encouraging regional diversification of automotive manufacturing, Toyota’s expansion of hybrid and electrification component production within the country is expected to be a strategic long-term advantage.
Ultimately, this additional investment in the West Virginia plant highlights Toyota’s approach to managing risk during the electrification transition — balancing the pace of change while strengthening local production.
