Apr 25, 2024

Gov. Holcomb announces $1.4B Toyota investment as Indiana continues to lead the future of mobility

Company’s new battery electric SUV grows Toyota’s total Indiana investment to $8B, solidifying its long-term stability in Southwest Indiana.

Governor Eric J. Holcomb announced today that Toyota will locate assembly of an all-new battery electric vehicle (BEV) in Indiana, investing $1.4 billion at its Princeton facility and bolstering the state’s leadership in the future of mobility. 

“Indiana and Toyota share a nearly 30-year partnership that has cultivated job stability and economic opportunity in Princeton and the surrounding southwest Indiana region for decades,” said Gov. Holcomb. “Toyota’s investment in the state began with an $800 million commitment and has grown to over $8 billion.  Today’s incredible announcement shows yet again just how important our state’s business friendly environment, focus on long-term success and access to a skilled workforce is to companies seeking to expand and be profitable far into the future. Indiana proudly looks forward to continuing to being at the center of the future of mobility."

The company’s investment will provide new plant infrastructure, including a new battery pack assembly line at the facility, to support production of the all-new battery electric SUV at Toyota Indiana. To support its growth, Toyota plans to create up to 340 new jobs by the end of 2025. The company already employs more than 7,500 associates in southwest Indiana to support production of the Toyota Sienna, Highlander, Grand Highlander and the Lexus TX.

“Our team members are the heart of Toyota,” said Tim Hollander, president of Toyota Indiana. “We take great pride in producing quality products while providing long-term, stable employment no matter the changes in our industry. Our team is committed to delivering this new product with the same quality and performance that Toyota customers expect.”

Today’s announcement is part of Toyota’s commitment to increase electrification efforts in the U.S. and grows the company’s total investment in its Indiana facility to $8 billion. This is the company’s third major expansion announcement for the Princeton facility in four years, following commitments in 2021 to bring two new vehicles to Indiana, investing $803 million and create 1,400 new jobs, and in 2020 to complete its plant modernization project, investing $700 million and creating 150 new jobs.

Toyota broke ground on its Princeton plant in 1996 and has since been a leader in Indiana’s automotive industry while creating new jobs and training opportunities for workers. In addition, the company has played a significant role in advancing quality of place and quality of life in the southwest Indiana region. Through READI, Toyota is supporting transformative projects, including the new Toyota Indiana YMCA in Princeton and The District housing complex in Princeton, to provide access to health and wellness, community support and housing for all residents while helping employers like Toyota and its many suppliers attract even more talent to the region.

The Indiana Economic Development Corporation (IEDC) committed an investment in Toyota of up to $5 million in incentive-based tax credits and up to $1 million in conditional structured performance payments based on the company’s plans to invest $632 million. These incentives are performance-based, meaning the company is eligible to claim state benefits once investments are made.