Toyota confirms transition of manufacturing iconic hot hatch from Japan to Derbyshire next year
Japanese carmaker Toyota will shift the production of the GR Corolla hot hatchback from its native Japan to the UK in 2026, due to significant customer demand that has exceeded supply levels in North America. Currently, the GR Corolla is not sold in the UK, but the move is geared towards increasing the company's supply of the sports car for North American markets, where it enjoys high demand.
The manufacturing of the hot hatchback will take place at Toyota's Burnaston plant in Derbyshire, where the hybrid Corolla family hatchback is already produced. This shift will also allow Toyota to benefit from the more favorable trade deal agreed between the US and UK, resulting in reduced tariffs for Japanese imports.
Toyota has highlighted that the decision to move production to the UK is based on its recognition of the "capability of TMUK (Toyota Manufacturing UK), its staff, and its supply chain, and the deep motorsport culture and skill base within the United Kingdom." Preparations for this move have been in place since last year.
While the exact investment for setting up the dedicated assembly line for the US-bound GR Corolla has yet to be disclosed, unconfirmed reports suggest that it will exceed £41 million. This will mark the first time a GR-branded Toyota will be made outside Japan, as the GR Corolla joins Toyota's European vehicle production hubs located in France, Turkey, Poland, the Czech Republic, Portugal, and Russia.
Yoshihiro Nakata, president, and CEO of Toyota Motor Europe, commented on the move: "We are proud that TMUK, our first plant in Europe, has been selected as the first overseas Toyota plant to produce GR vehicles, securing this expansion project for the GR worldwide. We very much appreciate the historical support and recognition of the United Kingdom and would like to continue to contribute to UK society as a 'Best in Town' company."
This move is expected to start by mid-2026 and is projected to produce 10,000 units annually. In 2024, the Burnaston plant produced 98,055 vehicles, making it one of the largest car manufacturers in the UK alongside Nissan, JLR, and Mini. The decision to move the GR Corolla production to the UK may provide a boost to Britain's automotive sector, which recently saw vehicle production plunge to a 72-year low in April due to a decline in demand from key export markets.
Experts believe that Toyota's decision is a sign of the United Kingdom's attractiveness to firms looking to set up factories, highlighting the country's ability to tailor its regulatory framework to better suit domestic industries following Brexit. This move could potentially lead to more automotive companies showing interest in setting up production facilities in the UK, further boosting the country's automotive sector.
Sources:1. Toyota Motor Europe, Press Release, "11 May 2023: GR Corolla Relocates to UK for North American Production"2. Autocar, "GR Corolla assembly line coming to UK when new Toyota model starts production," Dom Carneiro, 12 May 20233. Corporate Communications, "Toyota's GR Corolla to be Produced in the UK for Global Markets," 11 May 2023
- The GR Corolla hot hatchback, currently unavailable in the UK market, will be produced at Toyota's Burnaston plant in Derbyshire, starting Mid-2026, due to high demand in North America.
- This shift in production will allow Toyota to benefit from the favorable trade deal between the US and UK, reducing tariffs for Japanese imports.
- With investments reported to exceed £41 million, the GR Corolla will become the first GR-branded Toyota to be manufactured outside Japan, joining Toyota's European vehicle production hubs.
- Experts suggest that Toyota's decision to move the GR Corolla production to the UK could attract more automotive companies to set up production facilities in the UK, potentially boosting the country's automotive sector.
