According to media reports, Japanese car manufacturer Toyota officially announced on March 5th that it will invest 11 billion reais (equivalent to $2.2 billion) in Brazil. This investment will be completed in two parts before 2030, including the production of a new vehicle model designed specifically for Brazilian consumers.
Brazil's Vice President and Minister of Industry, Geraldo Alckmin, revealed Toyota's investment plan on March 3rd but did not disclose detailed information, including the investment timeline.
Toyota's Brazil CEO, Evandro Maggio, disclosed that this is the company's first investment plan announced in Brazil. Previously, Toyota had been announcing investment plans project by project.
Maggio stated that out of the total investment of 11 billion reais, Toyota expects to utilize 5 billion reais by 2026, with the remaining 6 billion reais to be invested by 2030. Toyota has not yet decided how to allocate the second tranche of 6 billion reais.
In a statement, Toyota mentioned its plan to start production of a new hybrid car and a car specifically designed for the Brazilian market by 2025, although specific timing was not disclosed.
Following companies like Volkswagen, General Motors, and Hyundai, Toyota becomes another global car manufacturer to announce additional investment plans in Brazil this year. Toyota operates three factories in Brazil, all located in the state of São Paulo.
Toyota's new investment plan also includes expanding its factories in Porto Feliz and Sorocaba. The former will start producing hybrid system engines by 2025, while the latter will begin battery production in 2026. Toyota did not disclose how much its capacity in Brazil would increase after the investment.
