Toyota announces $2.2 billion in new investments in Brazil by 2030

São Paulo, March 5 (EFE).- Japanese automobile manufacturer Toyota announced this Tuesday a new investment of 11 billion reais ($2.2 billion) in Brazil until 2030.

The company will execute about half of the total (5,000 million reais) by 2026, explained Brazilian Vice President Geraldo Alcmin, who attended an event at the Toyota factory in Sorocaba, in the interior of Sao Paulo. The regional governor, Tarcisio de Freitas.

The investment will be implemented in Sorocaba and the unit that the Japanese assembly company owns in Porto Feliz, also located in the state of São Paulo and dedicated to the production of engines since 2016, the date of its inauguration.

According to official estimates, this will create 2,000 new direct jobs and 8,000 indirect jobs by 2030.

“This is a very significant investment. Toyota is the champion in electric and hybrid vehicles, which is a Brazilian difference. This will be a big success. This shows the confidence shown in Brazil,” Elkmin told reporters.

The Vice President then reviewed the “good moment” of the Brazilian economy, which has witnessed declines in unemployment, interest rates and inflation, and growth in the São Paulo stock market and gross domestic product (GDP). 2.9% in 2023.

Toyota’s announcement joins other large international manufacturers, such as Volkswagen, General Motors, BYD, Stellantis or Japanese Nissan, that have decided to double their commitment to the South American country.

Prior to the Toyota Act, the Brazilian government had projected 100 billion reais of new investment in the automotive industry by 2029, primarily focused on hybrid and electric models.

Industry and Commerce Minister Alkmin explained this Tuesday that one reason for this increase is a scheme launched by the government that gives tax incentives to innovation, exports and decarbonization projects.

Likewise, he reminded that he has reestablished the import tax for electric vehicles, which were exempt until January 1, when they began to be taxed at 10%, a percentage that will progressively increase to 35%.

“Either you set up a factory here in Brazil, produce here, or you have to pay a 35% import tax. This new tax configuration makes all the difference,” the vice president said.