Toyota is evaluating plans to produce the GR Corolla hot hatch at its Burnaston facility in Derbyshire, as part of efforts to respond to strong demand from the United States.
According to a report by Reuters, the manufacturer is considering an investment of approximately £41 million to establish a dedicated production line at the plant. Burnaston currently manufactures the standard Corolla hatchback and estate for both the UK and European markets.
Should the proposal go ahead, the new line would have the capacity to build around 10,000 units of the GR Corolla annually for export to the US, Reuters reports.
Toyota’s Motomachi plant in Japan—known as the GR Factory—is presently running at full capacity. The site, which handles production of the GR Corolla, GR Yaris, and GR86, produced 25,000 vehicles last year, with Corollas accounting for roughly one-third of the output.
Burnaston already benefits from an established supply chain for Corolla bodies and components, positioning it as a logical candidate for any potential expansion of GR model production. Reuters, citing a source within Toyota, described the factory as a “natural choice” for the additional volume.
While this move is not directly linked to trade tariffs imposed under former US President Donald Trump, it may offer Toyota a strategic advantage. At present, the United States applies a 25% tariff on imported vehicles, including those from Japan. However, the UK has secured an agreement in principle that could reduce this tariff to 10% for up to 100,000 vehicles exported annually. Full details of the arrangement are still to be finalised, but UK-assembled GR Corollas would likely attract lower import duties compared to those built in Japan.
This development also raises the possibility of the GR Corolla being introduced to the European market. The model is currently sold in a limited number of regions, including the US and Japan.
Toyota’s European GR line-up presently includes the GR Yaris and GR Supra. The GR86 was withdrawn from sale due to the EU’s GSR2 safety regulations, and the Supra is expected to follow. However, the addition of GR Corolla production in the UK could signal broader availability across Europe—an outcome that would undoubtedly be welcomed by enthusiasts on this side of the Atlantic.