Toyota will invest around $1.3 billion, the largest investment in the Argentine automotive industry to date, to produce a new electric vehicle at its Buenos Aires plant.
Toyota plans to build a new electric vehicle in Argentina
Toyota Argentina announced that it received approval from the Evaluation Committee to join the RIGI (Large Investment Incentive Regime) to produce a new electric vehicle at its plant in Zárate, province of Buenos Aires.
The project will cost about $1.3 billion, Toyota said, making it the largest investment ever made in the Argentine automotive industry.
Toyota has been producing vehicles at the facility since 1997. The new investment will create around 3,600 jobs during the initial construction phase and around 2,600 once improvements are completed.
The site currently produces Toyota vehicles including the Hilux van, SW4 SUV and Hiace commercial van.
Toyota said it will announce more details soon, including production plans. According Automotive newsToyota’s all-electric pickup truck, the Hilux BEV, is a likely candidate for production in Argentina.
Toyota currently manufactures the Hilux EV in Thailand and exports it to Europe, Asia, Australia and other overseas markets.
The announcement comes as Chinese brands such as BYD, Geely and Chery dominate electric vehicle sales in Latin America with lower-cost vehicles.
BYD sold 85,800 vehicles in Latin America through July, according to MarkLines. That’s almost 60% of the 147,493 electric vehicles sold in the region in the same period.
Argentina’s Economy Minister Luis Caputo said the Toyota plant would generate around $1.28 billion in annual exports, with around 70% of production dedicated to foreign markets.
Electrek’s opinion
Toyota’s “multi-track” strategy calls for offering all powertrain options, including gasoline, hybrid, plug-in hybrid, battery electric and fuel cell electric vehicles.
As Chinese brands like BYD gain market share in key global markets such as Latin America, Southeast Asia and Europe, Toyota is forced to adapt.
Breaking with its traditional approach, Toyota, like many global OEMs, is increasingly relying on Chinese batteries, software and other vehicle components to compete globally.
Toyota broke ground on a new Lexus electric vehicle manufacturing plant in Shanghai last summer. The facility, set to open in 2027, will move at “Lexus speed,” as the company calls it, using advanced manufacturing methods, including gigacasting, to reduce costs and speed up production.
Its best-selling electric vehicle in China, the bZ3X, uses almost 90% locally sourced parts.
After introducing several new or updated all-electric vehicles globally, Toyota has sold considerably more electric vehicles this year.
As of August, Toyota sold 267,649 electric vehicles worldwide, more than double what it sold in the same period in 2025.
FTC: We use automatic affiliate links that generate income. Further.
