Toyota to Shift GR Corolla Production to UK to Meet North American Demand

Toyota is relocating part of its GR Corolla production to the UK, investing approximately $56 million in a dedicated line at its Burnaston plant in Derbyshire. The move aims to address growing North American demand and shorten delivery times by utilizing excess capacity in Britain, according to sources familiar with the matter.

This shift is not a response to U.S. President Donald Trump’s recent tariff policy, which reduced tariffs on British auto imports to 10% for up to 100,000 vehicles annually. Japan continues to push for a repeal of the 25% tariff on its vehicle exports.

The GR Corolla, a high-performance model popular among automotive enthusiasts, is currently produced in Japan. However, Toyota’s Motomachi plant is running at full capacity, limiting its ability to meet surging demand. Last year, the plant produced 25,000 high-performance GR vehicles, including 8,000 GR Corollas.

The Burnaston plant, which has produced the Corolla hatchback since 1992, is a logical site for the expansion. Production for North American exports is expected to begin mid-2026, targeting 10,000 units annually. Toyota will send engineers from Japan to support knowledge transfer and ensure quality standards.

Despite global shifts toward hybrid and electric vehicles, the GR series—featuring performance-focused models like the GR Corolla and GR Yaris—maintains strong appeal among racing enthusiasts. These cars are priced around 6 million yen, nearly double the standard model, and command higher margins.

Toyota plans to absorb any added tariff-related costs without raising prices. The Motomachi plant will continue to serve domestic and other international markets, while the UK plant handles exports to North America. The move reflects Toyota's strategy to optimize production and meet demand for its high-performance lineup.