Toyota is preparing to relocate a portion of its GR Corolla production to the UK, with plans to invest approximately $56 million into a dedicated manufacturing line for exports to North America.

The move is aimed at addressing long wait times for US customers and utilising underused capacity at its British facility, reported Reuters citing  two individuals familiar with the decision.

The company is currently producing the high-performance GR Corolla exclusively in Japan, catering to both domestic and international markets. However, surging demand in North America, particularly among driving enthusiasts who favour the gasoline-powered vehicle, has strained supply capabilities. The production shift is intended to alleviate that pressure.

New Production Line to Open at Derbyshire Plant

Starting mid-2026, Toyota will begin manufacturing 10,000 units annually at its Burnaston plant in Derbyshire. The UK facility, which began operations in 1992, already assembles the standard Corolla hatchback—the base model for the GR Corolla—making it an ideal location for the expansion.

The upcoming investment of about $56 million will go toward setting up a dedicated line at the plant, which has seen reduced output in recent years following the UK's exit from the European Union. Temporarily, Japanese engineers will be stationed at the British plant to facilitate knowledge transfer and help ramp up the GR Corolla’s production using Toyota’s advanced manufacturing methods.

This is not a response to President Donald Trump's tariffs on automobile imports, the report noted citing the sources. It further said that the decision was driven by logistical and production considerations rather than political ones.

Trade Context and Strategic Opportunity

Earlier this month, the Trump administration agreed to lower tariffs on British auto imports to 10 per cent for up to 100,000 vehicles annually. Japan, by contrast, continues to face a 25 per cent tariff on auto exports to the US. While the new production arrangement was reportedly unrelated to these policy shifts, the regulatory landscape does offer Toyota a potential strategic advantage in terms of cost efficiency.

Toyota did not confirm the production shift in response to questions from Reuters but said, “It was always looking for ways to optimise production.” The automaker has not made any public announcement regarding the reported move.

By expanding its manufacturing footprint in the UK, Toyota is positioning itself to better serve a crucial market while also supporting its underutilised European operations.