Japanese auto giant Toyota revealed on Tuesday its intention to invest 11 billion reais ($2.22 billion) in Brazil, marking its largest investment plan in the country to date. The investment will be made in two parts, with the first phase expected to be completed by 2026 and the second by 2030.
This announcement follows the unveiling of the investment by Brazil’s vice president and minister for industry, Geraldo Alckmin, on Sunday, though specific details were not disclosed at the time.
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According to Evandro Maggio, CEO of Toyota in Brazil, this investment plan signifies a shift in the company’s approach, as it is the first time Toyota has outlined its investment strategy in the country in such a comprehensive manner. Maggio revealed that of the total investment, 5 billion reais will be allocated by 2026, with an additional 6 billion reais earmarked for use by 2030, the specifics of which are yet to be determined.
The investment plan includes the development of a new hybrid flex vehicle by 2025, along with a car tailored specifically for the Brazilian market, although no timeline has been confirmed for the latter. Toyota currently operates three factories in Brazil, all located in the state of Sao Paulo.
As part of the investment plan, the company will expand its facilities in Porto Feliz to produce engines with hybrid systems by 2025, and its Sorocaba plant will begin battery production in 2026. Additionally, operations at the Indaiatuba unit will be transferred to Sorocaba between 2025 and 2026, with workers given the option to relocate.
Despite these significant developments, Toyota has not disclosed the extent to which its production capacity in Brazil will increase as a result of these investments. The company’s decision to invest heavily in Brazil underscores its commitment to the country’s automotive market and its confidence in the potential for growth and innovation in the region.
