Toyota plans to invest BRL11bn (US$2.2bn) in its Brazilian operations by 2030 to expand capacity and to switch production to flex fuel hybrid vehicles, according to local reports.
The automaker is the latest to step up investment in South America’s largest economy in response to new incentives announced by the Brazilian government in December aimed at reducing the industry’s carbon emissions.
The fund would expand production capacity of models driven by flex fuel hybrid powertrains, with internal combustion engines (ICE) which run on ethanol or petrol supplemented by electric motors.
The company launched its first flex fuel model in 2020, a Corolla.
Toyota said BRL5bn would be invested by 2026 to build a new plant in Sorocaba in Sao Paolo state to produce a previously announced new compact hybrid flex fuel model from 2025 and also a nearby production facility for hybrid vehicle batteries by 2026.
The automaker said its existing facility in Sorocaba was operating at full capacity.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataExisting vehicle production in Indaiatuba, also in Sao Paulo, would be transferred to the new Sorocaba plant by the end of 2026 to consolidate operations in one area.
Toyota do Brasil president, Evandro Maggio, said: “We have been in the process of restructuring our operations for some time to improve competitiveness. We also need to launch new products and adapt to market demand.”