Toyota is relocating part of its GR Corolla sports car production from Japan to Britain. The company plans to invest about $56 million in a dedicated production line at its Burnaston plant in Derbyshire. This move aims to serve the North American market by utilizing excess capacity in Britain and reducing delivery wait times for the popular vehicle.
The new production line at Burnaston will produce approximately 10,000 GR Corolla units annually. Toyota expects to start manufacturing on this line by mid-2026. The Burnaston plant, which began operations in 1992, already produces the Corolla hatchback, making it a natural choice for expansion. Engineers will be sent from Japan to Britain temporarily to share key production technologies and expertise.
Move Driven by Demand, Not Tariff Pressures
Sources familiar with the plan said Toyota’s decision is not a response to tariffs imposed by the U.S. government. Instead, the company aims to address the strong demand in North America for the gasoline-powered GR Corolla. The Trump administration recently agreed to reduce tariffs on British auto imports to 10% on up to 100,000 vehicles annually, but Japan still seeks to remove a 25% tariff on all imports.
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For automakers, tariffs add another layer of challenge alongside varying emissions standards and customer preferences in different markets. Toyota has struggled to keep up with North American demand for the GR Corolla due to its growing popularity among engine enthusiasts. The company hopes moving some production to Britain will ease these supply constraints.
Burnaston Plant Sees Production Decline Since Brexit
Although Burnaston benefits from advanced manufacturing technology, its output has declined after Brexit-related disruptions. The plant currently produces about 25,000 vehicles annually, including the GR Corolla’s base model, the Corolla hatchback. Toyota believes expanding GR Corolla production here leverages existing strengths and facilities efficiently.
GR Corolla Production Currently Maxed Out in Japan
The GR Corolla is built on a specialized production line at Toyota’s Motomachi Plant in Toyota City, Japan. This line reached full capacity last year, producing around 25,000 cars, with 8,000 units being GR Corollas. Toyota’s U.S. factories face heavy demand for hybrids and other vehicles, limiting options for shifting GR Corolla production stateside.
Toyota to Absorb Tariff Costs Without Raising Prices
Regardless of whether the cars are exported from Japan or Britain, Toyota plans to offset any increased tariff costs through cost-cutting and efficiency measures. The company does not intend to pass these expenses on to customers via higher prices.
The GR series, which includes the GR Corolla and GR Yaris, is inspired by Chairman Akio Toyoda’s passion for racing. These models integrate motorsport technology into production vehicles, offering high performance that appeals to enthusiasts. The GR Corolla is priced at approximately 6 million yen, double the cost of the standard Corolla model.
Sports Cars Maintain Loyal Customer Base Despite Shift to Electric
While the automotive industry increasingly moves towards electric and hybrid vehicles, sports cars like the GR Corolla retain a dedicated fan base. These vehicles, though selling in smaller volumes, provide higher profit margins for Toyota. The manual-intensive production process for the GR series also contributes to longer delivery times, especially for North American customers.
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Motomachi Plant to Continue Serving Japan and Other Markets
Following the production shift, Toyota’s Motomachi Plant will still manufacture GR Corollas for the Japanese market and other overseas regions. The decision to expand production in Britain specifically targets the North American market’s growing demand and aims to improve supply chain flexibility.
In The End
By reallocating part of the GR Corolla production to Britain, Toyota leverages existing capacity to reduce wait times and meet enthusiastic demand. The $56 million investment at Burnaston exemplifies the company’s strategy to optimize manufacturing and enhance responsiveness to key international markets.
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