Toyota Motor Corp. said that it will invest 1.7 billion reais ($337.68 million) to produce a new hybrid, flex-fuel small car in Brazil that will also have an electric motor and run on ethanol and petrol.
The Japanese automaker, which in 2019 debuted Brazil's first hybrid flex-fuel vehicle, a version of its iconic sedan the Corolla, has been putting a lot of money on the category in the South American nation where the majority of cars can run on 100% ethanol.
Rivals General Motors and Ford, based in the United States, who have concentrated on completely electric vehicles, are competing by investing in the technology with Stellantis and Volkswagen.
Tarcisio de Freitas, the governor of Sao Paulo, and Rafael Chang, the company's local manager, both attended the occasion where Toyota made their announcement. About 1 billion reais of the investment will come from tax credits Toyota has with the state.
"Toyota believes in the Brazilian market and continues to invest in technology and innovation to meet consumer needs," Chang said. "It is a sustainable solution that also creates jobs and economic development".
The Sao Paulo state government announced in a statement that Toyota's Porto Feliz facility will build the engines for the new tiny automobile, whose name was not disclosed. This move is anticipated to generate 700 jobs.
The car will go on sale in 22 Latin American nations starting in Brazil in 2024, it was added.