By ROB HULL
Confirming reports earlier in the week, Japanese car giant Toyota has today announced it will shift production of one of its in-demand hot hatchbacks to the UK next year.
Manufacturing of some GR Corolla cars will move from its native Japan to the Burnaston plant in Derbyshire in 2026, where the hybrid Corolla family hatchback is already produced.
However, despite plans to soon build the car in Britain, the GR Corolla isn't sold in the UK.
In fact, the aim is to increase Toyota's supply of these motors to North America where there's intense demand for the 300hp sports car - which costs $43,995 (approx £32,500). It will also mean the company can reap the benefit of the more favourable trade deal agreed between the US and UK, with Japanese imports levied with steeper 25 per cent tariffs.
It will be the first time a GR-branded Toyota - which stands for Gazoo Racing, the competition arm of the company that overseas its World Rally Championship and World Endurance Championship assaults that also tweaks its range of performance cars - will be made outside Japan.
While unconfirmed, it is reported that Toyota will spend over £41million setting up the dedicated assembly line for the US-bound hot hatchbacks.
Confirming reports earlier this week, Japanese car giant Toyota has today announced it will shift production of one of its in-demand hot hatchbacks to the UK next year
Toyota said on Friday that its GR Corolla has been 'met with high levels of customer enthusiasm and demand' in North America, which has 'outstripped supply, leading to today’s announcement of an expansion of vehicle production'.
It added that the choice reflects Toyota’s efforts to 'optimise its global production footprint to produce and deliver vehicles to customers as swiftly as possible'.
Toyota also has European vehicle production hubs in France, Turkey, Poland, the Czech Republic, Portugal, and Russia.
However, it said the decision to choose Burnaston is 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'.
Bosses say preparations for this move have been in place since last year.
Manufacturing of the GR Corolla hot hatch for the North American market will move from its native Japan to the Burnaston plant in Derbyshire in 2026 to meet incredibly high demand
The move allows the company to reap the benefit of the more favourable trade deal agreed between the US and UK, with Japanese imports levied with the higher 25% tariffs
Burnaston already produces the normal hatchback and hybrid estate Corolla for UK and European markets and has advanced production methods which sources say makes it perfect for the GR
Toyota also has European vehicle production hubs in France, Turkey, Poland, the Czech Republic, Portugal, and Russia. However, it said the decision to choose Burnaston is 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'
Yoshihiro Nakata, president and CEO of Toyota Motor Europe, commented: 'We are proud that TMUK, our first plant in Europe, has also been selected as the first overseas Toyota plant to produce GR vehicles, securing this expansion project for TGR 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.'
Expected to start by mid-2026, production is expected to reach 10,000 units annually.
In 2024, Burnaston produced 98,055 vehicles - a combination of Toyota Corollas and the Suzuki Swace, its Japanese partner's version built on the same platform.
Only Nissan, JLR and Mini produced more cars than Toyota in the UK last year.
The GR Corolla assembly line should help to recover some of the 20 per cent decline in annual outputs recorded last year, with the number of new Toyotas leaving the plant falling from 122,193 in 2023.
The news will be a small boost to Britain's automotive sector.
On Thursday, the Society of Motor Manufacturers and Traders confirmed that vehicle production in the UK had fallen to a 72-year low in April resulting from a huge decline in demand from key export markets as tariff fears weighed heavy.
Experts believe that Toyota's move is a sign of Britain's attractiveness to firms deciding where to set up factories.
A trade deal with the US to reduce tariffs from 25 per cent to 10 per cent was rubberstamped earlier this month.
This now means the UK is 'well-placed to act as a bridge between the US and EU,' said Alex Altmann from business advisers Lubbock Fine, adding that Brexit allowed the UK to 'tailor its regulatory framework to better suit domestic industries'.
Burnaston began operations in 1992 and already produces the normal hatchback and hybrid estate Corolla for UK and European markets
In 2024, Burnaston produced 98,055 vehicles - a combination of Toyota Corollas and the Suzuki Swace, its Japanese partner's version built on the same platform
There is intense demand in North America for the 300hp sports car - which costs $43,995 (approx £32,500)
Burnaston began operations in 1992 and already produces the normal hatchback and hybrid estate Corolla for UK and European markets.
Despite suffering a decline in manufacturing since Brexit, its advanced production technology and Corolla expertise make it a natural choice, one of the people said.
Engineers will be temporarily dispatched from Japan to share production technology and other expertise as well.
The 'GR factory' Motomachi plant in Japan assembled 25,000 cars last year, around a third of which are Corollas, but is reportedly at full capacity.
The shift to UK GR Corolla production also lends credence to the theory that the GR Corolla could launch in Europe soon. Currently it is only offered in a number of enthusiast markets including the US and Japan, but prototypes were spotted testing at the Nürburgring last year.
Currently UK hot hatch fans have the GR Yaris, but demand is so high that Toyota uses a ballot system.
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