Toyota is set to invest $1.3 billion in its manufacturing facility located in Zárate, Buenos Aires province. This project represents the largest capital injection in the history of the Argentine automotive sector. The company received approval from the Evaluation Committee to participate in the RIGI incentive program for large investments.
The expansion will generate 3,600 jobs during the construction phase and 2,600 permanent roles following the upgrades. Currently, the plant produces the Hilux pickup, SW4 SUV, and Hiace van. Minister of Economy Luis Caputo stated that the site is expected to generate $1.28 billion in annual exports, with 70% of output destined for international markets.
The investment aims to help Toyota compete with Chinese manufacturers like BYD, Geely, and Chery, which currently lead the Latin American EV market. Reports suggest the Hilux BEV is a candidate for production at the site. Globally, Toyota sold 267,649 electric vehicles through August, doubling its performance compared to the same period in 2025.
Toyota continues to pursue a multi-pathway strategy, offering various powertrain options. To remain competitive, the company is increasingly integrating Chinese software and battery technology into its vehicles. Additionally, Toyota is constructing a new Lexus EV plant in Shanghai, which is scheduled to open in 2027 and will utilize advanced manufacturing techniques like gigacasting.
