Toyota receives approval for $1.3 billion investment in Argentina — Electrek

Toyota has received approval for an investment of approximately $1.3 billion in the production of a new electric vehicle at its plant in Zárate, Buenos Aires Province, Argentina. As Electrek reports, the company’s Argentine division was authorized to join the RIGI large investment incentive regime.

Investment and jobs

Toyota said the project, worth about $1.3 billion, would become the largest investment in Argentina’s automotive industry. During the initial construction phase, the company expects to create approximately 3,600 jobs. After the modernization is completed, the facility will have around 2,600 jobs.

Toyota’s plant in Zárate has been operating since 1997. It currently produces the Hilux pickup truck, the SW4 SUV, and the Hiace commercial van. The company said it would disclose additional details later, including production plans.

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Export focus

Argentina’s Economy Minister Luis Caputo said the Toyota plant would generate about $1.28 billion in exports annually. According to him, approximately 70% of production will be intended for foreign markets.

The report notes that Chinese brands BYD, Geely, and Chery dominate electric vehicle sales in Latin America due to more affordable models. According to MarkLines, BYD sold 85,800 vehicles in the region through July — nearly 60% of the 147,493 electric vehicles sold during that period.