Toyota is set to invest approximately $1.3 billion—the largest investment in Argentina’s automotive history—to manufacture a new electric vehicle (EV) at its plant in Zárate, Buenos Aires province. This investment has received approval from the Evaluation Committee as part of the RIGI (Incentive Regime for Large Investments).
The new project is expected to create around 3,600 jobs during the initial construction phase and an additional 2,600 once upgrades are completed. Toyota has been operating this facility since 1997, producing popular models such as the Hilux pickup, SW4 SUV, and Hiace commercial van.
More details about production plans will be announced soon, but reports suggest that the Hilux BEV (battery electric vehicle) might be produced in Argentina. Currently, the Hilux EV is manufactured in Thailand and exported to various markets worldwide.
The move comes as competitive pressure increases from Chinese brands like BYD, which have captured a significant share of the electric vehicle market in Latin America, selling nearly 60% of the region’s EVs by mid-2023. Argentina’s Economy Minister indicates that Toyota’s plant could generate substantial annual exports, with a focus on foreign markets.
Toyota’s strategy aims to encompass a variety of powertrains, including traditional gasoline, hybrids, and electric vehicles. To keep pace with evolving market dynamics, the company is increasingly relying on locally sourced components from China and enhancing its manufacturing capabilities globally.
