Toyota Motor Corporation has planned to build a new automobile manufacturing plant in one of Japan cities, with operations expected to begin in early 2030. 

While the company has not yet disclosed the specific vehicle model or production capacity of the new facility, the move has sparked speculation that Toyota may focus on electrified vehicles at the plant.

This decision is particularly notable as it comes amid a general decline in domestic vehicle sales in Japan. Toyota’s last factory to begin operations in its home country was launched back in 2012.

Toyota has long maintained a policy of preserving an annual domestic production capacity of 3 million vehicles, with about half of these units intended for export markets, including Indonesia.

In the first half of 2025, Toyota and its luxury division Lexus produced a total of 4,918,024 vehicles globally − marking a 5.8 percent increase compared to the same period in 2024. Of that total, 1,639,637 units were produced in Japan, reflecting an 8.7 percent year-on-year growth. The remaining 3,278,387 units were manufactured outside Japan, up 4.4 percent from last year.

This surge in production has been attributed to robust sales across several key markets, including North America, China, and Japan.

In North America, demand for hybrid vehicles has seen notable growth, with models like the Camry and Sienna proving particularly popular. Similarly, Toyota has gained momentum in China’s growing New Energy Vehicle (NEV) segment, receiving favorable responses from consumers.

In Indonesia, while sales have come under pressure, Toyota’s production remains strong, driven by high export volumes. Back home in Japan, the market is showing signs of recovery after facing several challenges, including recall issues. The release of the Crown Estate has played a crucial role in supporting Toyota’s domestic performance in the first half of 2025.

As Toyota prepares to expand its manufacturing footprint, all eyes will be on how the company aligns this new investment with its broader electrification strategy and global market shifts.