Toyota has announced that it will begin manufacturing the GR Corolla in the United Kingdom starting in 2026. This move marks a significant milestone for the company, as it will be the first time a full-fledged Gazoo Racing (GR) vehicle is produced outside of Japan. Preparations for this transition actually began back in 2023, with Toyota’s Burnaston plant in Derbyshire—part of Toyota Motor Manufacturing UK (TMUK)—undergoing the necessary updates and modifications to support production of the high-performance model.
The decision to assemble the GR Corolla in the UK is both strategic and practical. The Burnaston facility already builds the standard Corolla hatchback as well as the Corolla Touring Sports wagon, which is not available in the U.S. Since the GR Corolla's debut in 2022, it has been exclusively manufactured at Toyota’s Motomachi plant in Japan. Now, with the inclusion of the Burnaston site, Toyota will have a more diversified manufacturing base for the model. However, it remains to be seen whether this shift signals plans to sell the GR Corolla in European markets, where the vehicle is currently not available. Toyota has stated it will disclose more information in the future regarding where the UK-built GR Corollas will be sold, as well as production volumes and investment details for the factory.
The company cites rising global demand for the GR Corolla as the primary reason for this expansion. Toyota also emphasized its goal of delivering vehicles to customers more efficiently. According to a Reuters report, Toyota plans to export the UK-assembled GR Corolla to the United States, which continues to be one of the key markets for the performance hatchback. The automaker is reportedly investing up to $56 million to facilitate the expansion of production capabilities at the Burnaston facility.
One of the key benefits of relocating GR Corolla production for North American buyers is a reduction in tariffs. The U.S. currently imposes a 25% tariff on Japanese-built vehicles. In contrast, tariffs on cars imported from the UK have been lowered to just 10%—but only for the first 100,000 units annually. Toyota reportedly aims to ship up to 10,000 GR Corollas from the UK to the U.S. each year, which would help reduce costs associated with import duties, even if final pricing adjustments are still uncertain.
Meanwhile, Toyota has hinted at a more extreme version of the GR Corolla. This new edition is expected to deliver more torque than the current model's 400 Nm and may adopt a two-seat layout similar to the limited-run Morizo Edition. Whether this upcoming version will carry the GRMN badge or introduce a new naming convention remains to be confirmed. Either way, for enthusiasts considering a GR Corolla, now may be the right time to make a purchase before prices potentially rise.