Toyota has secured approval to invest around $1.3 billion to build a new electric vehicle at its Buenos Aires plant, marking the largest automotive investment in Argentina's history. The project, approved under the country's RIGI incentive regime, will add an EV line at the Zárate facility that currently makes the Hilux pickup, SW4 SUV, and Hiace van.
The investment is expected to create roughly 3,600 jobs during construction and about 2,600 after completion. Argentina's economy minister said the plant would generate around $1.28 billion in annual exports, with about 70% of production going to foreign markets. Toyota has not confirmed the model, but Automotive News reports the all-electric Hilux pickup is a likely candidate; Toyota already builds that vehicle in Thailand for export.
The announcement comes as Chinese automakers BYD, Geely, and Chery dominate Latin America's EV market with cheaper models. BYD alone sold 85,800 vehicles in the region through July, nearly 60% of the 147,493 EVs sold. Toyota's broader strategy includes using Chinese batteries and components, as seen with its upcoming Lexus plant in Shanghai, and its global EV sales more than doubled through August compared to the same period last year.