- Toyota is reportedly setting up a new GR Corolla production line in the UK.
- The hot hatch is currently built exclusively at the Motomachi plant in Japan.
- Additional UK-made units will be exported to North America to meet demand.
Toyota appears to be gearing up for a shift in GR Corolla production, and this time, it’s looking toward the UK. In what looks like a response to high demand, the automaker is expected to start building the hot hatch at its Derbyshire facility, making use of unused production capacity. The UK-built GR Corollas will reportedly head straight to North America, aiming to cut down the long wait times for the all-wheel-drive performance model.
Currently, every GR Corolla rolls off a dedicated line at Toyota’s Motomachi Plant in Yokohama. But despite 8,000 units coming out of Japan last year, the output still fell short of demand. With the factory already maxed out, and Toyota’s North American plants focused on hybrid production, the company appears to be turning to a more flexible option for this internal-combustion-only model.
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According to Reuters , which cites two individuals familiar with the matter, Toyota is investing about ¥8 billion ($55.6 million) to set up a GR Corolla production line at its Burnaston plant in Derbyshire. The new setup is expected to go live by mid-2026, with an annual output of 10,000 units, all reserved for North American buyers.
The UK plant was inaugurated in 1992, but production declined since Brexit. With the base-spec Corolla already being produced at the same facilities, it will be easier for Toyota to build a new line for the GR Corolla. Engineers will also travel from Japan to the UK to ensure a smooth transition. When asked by Reuters, the company declined to confirm the report, but admitted they are “always looking for ways to optimize production”.
Making Use of Existing Infrastructure
Meanwhile, Japanese-built GR Corollas will continue to serve local buyers and export markets like Australia, Brazil, Indonesia, Malaysia, New Zealand, and South Africa. Europe and the UK remain off the list due to emissions regulations that currently block the model’s entry.
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Unnamed sources say the decision isn’t tied to former President Donald Trump’s tariff policy. Earlier this month, the US government lowered tariffs on UK-built vehicles to 10 percent for up to 100,000 units per year. In contrast, cars imported from Japan are still subject to a 25 percent tariff, though negotiations are underway to reduce that rate. Regardless of the outcome, Toyota reportedly plans to absorb the costs and keep pricing unchanged for its models.
Updated Version Coming Soon
First launched in 2022, the GR Corolla represents the most powerful version of the hatchback, featuring rally-inspired styling and a purpose-built chassis. Toyota teased the updated 2026 model earlier this year, suggesting improved aero, chassis tweaks, and a bump in torque. Under the hood, the car retains its turbocharged 1.6-liter three-cylinder engine, which produces 300 horsepower (224 kW / 304 PS).
