Toyota Motor plans to invest $1.34 billion in Argentina to develop a new plant for fully electrified vehicles, in what the company and Argentine authorities describe as a major investment in the country’s automotive industry.
The proposed facility would be located at Toyota Argentina’s existing industrial site in Zárate, Buenos Aires province. The project would introduce production of a fully electrified vehicle technology that is not currently manufactured in Argentina.
Toyota Project Advances Under RIGI
Toyota Argentina has received approval from the evaluation committee to join Argentina’s Incentive Regime for Large Investments (RIGI) for the proposed project.
Toyota described the approval as a key milestone that allows the project to move toward the company’s final investment decision.
The company said the project could support Argentina’s position as a vehicle production and export base for the Latin American market. Toyota also said investment incentives such as RIGI could improve competitiveness, increase long-term predictability and create conditions for additional investment.
Project Expected to Create Thousands of Jobs
The proposed investment is expected to generate approximately 3,600 jobs during construction and around 2,600 direct and indirect positions once the facility is operating.
The project is also expected to generate approximately $1.28 billion in annual exports, representing nearly 70% of projected production.
Argentina’s Economy Minister Luis Caputo described the project as a significant investment for the country’s automotive industry and said it would contribute to employment and exports.
Toyota Has Produced Vehicles in Zárate Since 1997
Toyota has operated its Zárate production facility since 1997. The company said it continues to work with employees, suppliers and other stakeholders across its local value chain to improve the competitiveness and long-term sustainability of its Argentine operations.
The planned electrified vehicle facility would expand the site’s production capabilities into a vehicle category that is not currently manufactured in Argentina.
Toyota said further details regarding the timing of the final investment decision and future production plans will be announced at a later stage.