Toyota will start the production of the GR Corolla compact car at its Burnaston plant in Derbyshire, central England, in 2026.
The automaker hopes to utilize the surplus production capacity of the plant, which is capable of producing 150,000 vehicles annually at present, for exports to the U.S. market, where demand is growing.
The plan was announced by Toyota Motor Europe NV/SA on Friday.
The investment required to increase production at the plant is estimated to be around ¥8 billion.
The Burnaston plant, operated by Toyota Motor Manufacturing (U.K.) Ltd., currently produces models including the Corolla Hatchback. Its output has been shrinking partly due to Brexit, falling below 100,000 units last year.
The decision to start building the GR Corolla at the plant reflects "Toyota's efforts to optimize its global production footprint to produce and deliver vehicles to customers as swiftly as possible," the automaker said in a statement, adding that it had been preparing to increase production there since last year and that the plan was not based on U.S. President Donald Trump's tariff measures.
Earlier this month, the United States and Britain agreed to lower the U.S. tariff on automobiles imported from Britain from 27.5% to 10% for up to 100,000 vehicles per year. This lower tariff quota is equivalent to the number of vehicles that were exported from Britain to the United States in 2024.
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