Japanese carmaker Toyota Motor Corporation announced on April 19 that it will invest BRL 1.7 billion (around USD 337.68 million) to produce a new hybrid flexible-fuel compact car in Brazil. The new vehicle will use both gasoline and ethanol as fuel, in addition to an electric motor.
Toyota has been betting big on this sector in Brazil, where most cars can use 100% ethanol. In 2019, the automaker launched Brazil’s first hybrid flexible-fuel car, a version of its flagship sedan Corolla.
Toyota’s competitors Stellantis and Volkswagen are also investing in the technology, while American automakers General Motors and Ford are focusing on the development of pure electric vehicles.
The plan was announced by Rafael Chang, Toyota’s Brazil CEO, and São Paulo State Governor Tarcisio de Freitas at an event. Part of the funding for Toyota’s plant (about BRL 1 billion) will come from tax breaks the company has in the state.
“Toyota believes in the Brazilian market and will continue to invest in technology and innovation to meet the needs of local consumers. This is a sustainable solution, creates jobs, and drives economic development,” said Chang.
According to a statement from the São Paulo state government, the engine of the new compact car (whose name has not been revealed) will be produced at Toyota’s Porto Feliz factory and is expected to create 700 jobs. The new model is expected to be launched in Brazil in 2024 and sold in 22 Latin American countries.
Post time: Apr-23-2023