Construction work was slow initially, but from September, Toyota will crack the whip at the site of its third manufacturing plant in Brazil, in Sorocaba, 56 miles from São Paulo City. Confirmed investment is now US$600m for 70,000 units yearly from the second half of 2012, about half what was originally envisaged.
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About two years ago, the company leaked news it was planing a $1bn investmentin a factory for 150,000 vehicles a year, compatible with it aim of a 10% share of the Brazilian car and light commercial markets versus about 4% currently.
It is possible that the recent mega-recalls and the financial consequences have made the Japanese automaker more prudent.
Competitors have capitalised on the delay to the project, snapping up some of their planned market share.
The Sorocaba site is so large (1.5 square miles) Toyota could produce over 700,000 cars a year there and still have room to spare.
The plant will be used to launch Toyota’s first compact here, in mid-segment by price. It will be based on the Etios launched at the New Delhi motor show late in January. Besides the hatch and the saloon already revealed, the Brazilian line will likely eventually include SUV and station wagon versions.
The company’s Brazilian workforce will have increased 50% from 3,200 to a shade over 5,000 by the time sales start.
