Toyota confirmed on Tuesday (5) the financial contribution of R$ 11 billion in Brazil over the next six years. The announcement had been made in advance by the Vice President of Brazil and Minister of Development, Industry, Trade and Services, Geraldo Alckmin. The investment will be used to expand production capacity in the country, with a focus on electrification and exports.
The investment was confirmed by the manufacturer’s CEO for Latin America and the Caribbean, Rafael Chang. According to Toyota, the contribution will allow new models to be offered with hybrid flex technology.
5 billion reais will be used by 2026 for the production of a new compact flex vehicle. This contribution had already been advanced last year.
“Toyota has been present in Brazil for 66 years, continuously investing in technology and innovation to offer the best solutions and meet consumer needs. An example of this commitment was pioneering the development of flex hybrid technology in the country. We are very pleased to be able to expand our local production, export to the entire region and thus generate and distribute more value to society as a whole, in the form of jobs and economic development,” says Rafael Chang, Toyota’s CEO for Latin America and the Caribbean.
According to Toyota, the plant in Sorocaba (SP) will be expanded to be able to support the demands of the new products. The manufacturer states that the brand’s facilities are currently working at full capacity.
The Japanese brand also stated that the production operations in Indaiatuba (SP) will be transferred to Sorocaba gradually, with the move being completed by 2026. Toyota says it aims to transfer all jobs from Indaiatuba to Sorocaba, as well as creating between 500 and 2,000 new jobs there.
The manufacturer explains that this move is necessary for the introduction of new electrified models in the country and estimates that this move will attract more investors to the region.
Toyota plans to assemble the batteries for the hybrid systems of its cars in Sorocaba as early as 2026. The engines will continue to be produced in Porto Feliz (SP). The future of the Indaiatuba plant has not yet been revealed. Currently, the plant is responsible for producing the Corolla Sedan.
What new models could Toyota make in Brazil?
One of the models that will soon be manufactured by Toyota will be the Yaris Cross, a SUV tipped to be one of the Japanese brand’s most affordable cars. Using the DNGA platform, the SUV is already offered in the Asian market and has a hybrid engine as one of its attractions. This model is, in fact, the main reason for the R$ 5 billion contribution until 2026.
In addition, the second model is expected to be a truck below the Hilux to take on the Fiat Toro in the domestic market and also in South America. This segment is already very hot here and should gain even more rivals in the coming years with the launches of Renault, Volkswagen, among others.
