Toyota Motor allocated $912 million across five American manufacturing facilities to expand hybrid vehicle production capacity, the Japanese automaker said Tuesday. The investment will create 252 new jobs as the company reinforces its position in a segment where it commands more than 51% market share through the third quarter.
West Virginia’s Buffalo plant will receive the largest portion at $453 million to increase assembly of four-cylinder hybrid-compatible engines. Georgetown, Kentucky gets $204.4 million for similar engine work, while Blue Springs, Mississippi receives $125 million to add hybrid Corolla production. The Jackson, Tennessee and Troy, Missouri facilities round out the allocation.
The spending forms part of a broader $10 billion U.S. investment commitment Toyota confirmed last week, which would bring its total American capital deployment to nearly $60 billion since entering the market seven decades ago. Most investments are expected to be completed by 2027.
Timing reflects market dynamics favoring gasoline-electric powertrains over battery-only vehicles. Hybrid sales increased 36% in the second quarter of 2025, with hybrids accounting for 22% of new light-duty vehicle sales, while pure electric adoption has plateaued despite infrastructure improvements.
Toyota’s strategy contrasts with rivals who committed heavily to battery electric infrastructure before consumer demand materialized. The automaker recently opened a $13.9 billion battery plant in North Carolina producing cells for hybrid, plug-in and electric models.
