Toyota Shifts GR Corolla Production to Britain to Meet North American Demand

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Business

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Image Source: REUTERS/Athit Perawongmetha/File Photo

Toyota Motor Corporation (7203.T) is relocating a portion of its GR Corolla sports car production to Britain, investing approximately $56 million in a dedicated production line aimed at fulfilling export demands for the North American market. This strategic move is designed to leverage excess capacity in the UK and reduce delivery wait times for the popular gasoline-powered vehicle, according to sources familiar with the situation.    

The decision to shift production from Japan is not a direct response to U.S. tariffs on automobile imports, as clarified by the sources who spoke on the condition of anonymity. Earlier this month, the Trump administration agreed to lower tariffs on auto imports from Britain to 10% for up to 100,000 vehicles annually, while Japan continues to seek the repeal of the 25% tariffs imposed by the U.S. on all auto imports.    

For global automakers like Toyota, navigating these tariffs presents an additional challenge alongside varying emissions standards and customer preferences across major markets. Currently, Toyota produces the GR Corolla in Japan for both domestic and North American markets but has struggled to meet the growing demand from engine enthusiasts in North America.    

The new production line will be established at Toyota's Burnaston plant in Derbyshire, with plans to manufacture 10,000 GR Corollas annually for export to North America starting in mid-2026. The Burnaston facility, which began operations in 1992, has advanced production technology but has experienced a decline in output since Brexit. The plant already produces the base model of the Corolla, making it a suitable location for the new line.    

To ensure a smooth transition, engineers from Japan will be temporarily dispatched to the UK to share production technology and expertise. In response to inquiries from Reuters, Toyota stated that it is continuously exploring ways to optimize production, although the company has not publicly announced this specific plan.   

The GR Corolla is part of Toyota's high-performance GR series, which also includes the GR Yaris. This series reflects Chairman Akio Toyoda's passion for racing and incorporates motorsport technology into commercial vehicles. The GR Corolla is priced at approximately 6 million yen, which is double that of the standard model. Despite a shift towards electric and hybrid vehicles, the sports car segment maintains a dedicated following, with higher profit margins despite lower sales volumes.    

The production shift to Britain will allow the Motomachi plant in Toyota City, Japan, to continue focusing on vehicles for the domestic market and other international markets. Toyota plans to absorb any cost increases resulting from tariffs through cost-cutting measures, ensuring that prices for the GR Corolla will remain stable for consumers.    

As the automotive industry continues to evolve, Toyota's strategic adjustments reflect its commitment to meeting customer demand while navigating the complexities of global trade and production challenges.