Toyota Electrifies Plant in Argentina with US$1.3 Billion

Toyota will invest US$1.3 billion in a plant in Argentina to produce electric vehicles, with the aim of countering the growing presence of Chinese competitors in the region.

The Japanese automaker revealed that Argentine authorities have already approved the project so it can receive the corresponding incentives.

The investment will go toward the Zárate manufacturing complex, which opened in 1997 near Buenos Aires and is the production site for the Hilux pickup, the SW4 SUV (also known as the Fortuner), and the Hiace van.

It is estimated that the project will generate some 3,600 jobs during the construction phase and nearly 2,600 during the operational phase, including both direct and indirect jobs.

Toyota did not specify which model it will produce, but the most viable option would be the electric version of the Hilux, which is currently produced in Thailand for Asia, Europe, and Australia.

Luis Caputo, Argentina’s Minister of Economy, said the company expects to export 70% of its production, but did not provide specific volume figures. The plant produced 116,291 vehicles in the first eight months of the year, according to the latest available figures.

The introduction of an electric pickup truck for Latin America would consolidate Toyota’s presence in a key, growing market that is currently under pressure from new Chinese competitors offering low-cost electrified vehicles.

The government said that Toyota’s decision “reflects Argentina’s potential to continue strengthening its role as a strategic platform for vehicle production and export throughout Latin America.”