Toyota Affirms Commitment to Arizona Proving Grounds with New Investment

Rhea-AI Summary

Toyota (NYSE:TM) has announced a $50 million investment in its Arizona Proving Grounds, demonstrating its commitment to vehicle testing and development capabilities. The investment includes construction of a 5.5-mile oval track, off-road park, and new ride handling surfaces.

The facility, renamed as Arizona Mobility Test Center at Toyota Arizona Proving Grounds (AMTC at TAPG), has been open to industry testing since 2021, hosting 37 different organizations with approximately 286 test vehicles conducting over 203,400 hours of testing. The 11,650-acre facility features 77 miles of testing surfaces, including 60 miles of paved roads.

Toyota plans to complete most construction by late 2025, with future plans including a facility for advanced driver assistance technology development.

Positive

• New $50 million investment strengthens Toyota's testing capabilities and infrastructure
• Facility generates additional revenue through third-party rentals and testing services
• Expansion includes 7 major development projects enhancing testing capabilities
• Strategic location in Arizona enables year-round testing operations

Negative

• Significant capital expenditure required for facility upgrades
• Construction timeline extends into 2026 for some projects

Insights

Automotive Industry Analyst

Toyota's $50M Arizona testing facility expansion strengthens R&D capabilities while creating minimal financial impact on the automotive giant.

Toyota is investing $50 million to expand its Arizona Proving Grounds, demonstrating the company's ongoing commitment to vehicle testing and development capabilities in North America. The expansion includes a completed 5.5-mile oval track, noise pass-by testing facilities, ride and handling surfaces, and plans for an off-road park, with most construction finishing in 2025.

This investment strengthens Toyota's North American R&D infrastructure at a facility that has already attracted 37 different organizations conducting over 203,400 hours of testing since opening to third parties in 2021. The facility serves dual purposes: supporting Toyota's own vehicle development while generating additional revenue through third-party rentals.

While the $50 million investment represents just a fraction of Toyota's global R&D budget (approximately $8.76 billion annually based on their stated $1 million per hour), it reinforces Toyota's methodical approach to vehicle development. The expanded Arizona Mobility Test Center provides specialized testing environments for both conventional vehicles and newer technologies, potentially accelerating validation of innovations before they reach production.

The enhanced capabilities align with Toyota's broader strategy of maintaining leadership across diverse mobility solutions. With 32 electrified options already in their lineup and a new battery plant opening in North Carolina in 2025, these testing facilities will likely support validation of both conventional and alternative powertrain technologies. The facility's remote desert location provides ideal conditions for controlled testing across extreme environments, a critical advantage for comprehensive vehicle development.

More than $50 million in new development includes 5.5-mile oval track and expanded capabilities for vehicle and technology testing and development

Facility available for third-party usage through rentals and long-term residencies

WITTMANN, Ariz., July 2, 2025 /PRNewswire/ -- Toyota Motor North America (Toyota) announced today that it has allocated and broken ground on more than $50 million in construction of new amenities for vehicle and automotive technology testing and development, affirming commitment to the Arizona Proving Grounds.  The new construction includes a 5.5-mile oval track, an off-road park, and new ride and handling surfaces, among many other improvements. Most of the new construction will be complete by later this year. Toyota is also planning a future facility for development of advanced driver assistance technology. Formally named the Arizona Mobility Test Center at Toyota Arizona Proving Grounds (AMTC at TAPG), the facility, under Toyota ownership, has been available to industry as a vehicle testing resource since 2021.   

"The new investment in Arizona signals the facility's importance to Toyota," said Stefan Young, Vice President at Toyota Motor North America's Research and Development. "Site updates make it more attractive as an ideal place for companies to test new vehicle capabilities, including by Toyota for our own North American-developed vehicle line-up, thanks to the new and expanded development capabilities."

This investment features seven different projects:

Project Name	Estimated Completion	Common Uses
Noise Pass-by	COMPLETE	Noise pass-by testing (ISO 2021 certified for meeting global regulations)
Oval Track (5.5mi)	COMPLETE	Mileage accumulation, stop & go testing, durability, high speed burst
Ride & Handling (1.5mi)	COMPLETE	Handling, ride evaluation, tire evaluation, wet testing
Loop Road A (1.3mi)	COMPLETE	Coast down, straight line testing
North Straight (1.7mi)	Fall 2025	Coast down, straight line testing
Off-road Park	Fall 2025	Off-road capability & truck testing
VDA Resurface (17 acre)	2026	Multiple

AMTC at TAPG has been managed by Intertek Transportation Technologies since 2021 under a management agreement. The company oversees facility administration, rental operation, including marketing to solicit new business, and tenant services.  Since offering the facility to outside companies, AMTC at TAPG has hosted 37 different organizations with approximately 286 test vehicles that have conducted about 203,400 hours of testing and hosted 22 events.

"Again and again, Arizona is proving why businesses move to, stay in, invest in our state," said Arizona Governor Katie Hobbs. "We're grateful to Toyota for its efforts to bring innovation and opportunity to Arizona. This new investment in our state will spur economic growth and put us at the forefront of auto ingenuity."

"I'm grateful to Toyota for their investment in Wittmann, Arizona and their commitment to innovation," said Arizona House Transportation and Infrastructure Committee Chairman Leo Biasiucci.  "As chair of the House Transportation and Infrastructure Committee, I'm proud that Toyota chose Arizona to call home."

AMTC at TAPG is located in the Sonoran Desert near Wittmann, Arizona, a town about 60 miles northwest of Phoenix. The facility covers approximately 11,650 acres and has 77 miles of testing surfaces with 60 miles of paved roads, more than 50 miles of off-road and dirt tracks and a high-speed oval track with a second oval track nearing completion. Toyota established the Arizona Proving Grounds in 1993, and it has been home to testing more than 50 Toyota and Lexus vehicles for the North American market since that time.

About Toyota
Toyota (NYSE:TM) has been a part of the cultural fabric in North America for nearly 70 years, and is committed to advancing sustainable, next-generation mobility through our Toyota and Lexus brands, plus our more than 1,800 dealerships.

Toyota directly employs nearly 64,000 people in North America who have contributed to the design, engineering, and assembly of nearly 49 million cars and trucks at our 14 manufacturing plants. In spring 2025, Toyota's plant in North Carolina will begin to manufacture automotive batteries for electrified vehicles. With more electrified vehicles on the road than any other automaker, Toyota currently offers 32 electrified options.

For more information about Toyota, visit www.ToyotaNewsroom.com.

Toyota Research & Development
For more than 50 years, Toyota's Research & Development groups in North America have participated in engineering projects for several of the best-selling Toyota vehicles on U.S. roads. Teams are now creating both next-generation vehicles and new and advanced mobility concepts that can better move people, goods and information. Toyota's innovation has secured more patents from the United States Patent and Trademark Office than any other automaker for the past 11 consecutive years (2,428 in 2024). Centered in Ann Arbor, Michigan, Toyota's North American R&D groups are pursuing Toyota's mission to "Produce Happiness for All" by making life safer, easier and more enjoyable. Globally, Toyota spends approximately $1 million per hour on R&D to ensure that Toyota rapidly and continuously develops cutting-edge, high-quality, and appealing vehicles.

Media Contact
Rick Bourgoise, richard.bourgoise@toyota.com

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SOURCE Toyota Motor North America

FAQ

What is Toyota's new $50 million investment in Arizona for?

The investment is for expanding the Arizona Proving Grounds with a 5.5-mile oval track, off-road park, and new ride handling surfaces to enhance vehicle testing capabilities.

How many companies have used Toyota's Arizona testing facility since 2021?

37 different organizations have used the facility, conducting over 203,400 hours of testing with approximately 286 test vehicles.

What is the size of Toyota's Arizona Proving Grounds facility?

The facility covers 11,650 acres with 77 miles of testing surfaces, including 60 miles of paved roads and over 50 miles of off-road tracks.

When will Toyota complete the new construction at its Arizona testing facility?

Most of the new construction will be completed by late 2025, with some projects extending into 2026.

How long has Toyota's Arizona Proving Grounds been operational?

Toyota established the Arizona Proving Grounds in 1993, testing more than 50 Toyota and Lexus vehicles for the North American market since then.