Toyota approved for $1.3 billion EV plant in Argentina

Toyota Argentina has won approval to build a new EV at its Zárate factory in Buenos Aires province, Electrek reports. Toyota said it will invest about $1.3 billion, the largest automotive investment in Argentina's history.

The approval comes from the country's Evaluation Committee under RIGI, the Incentive Regime for Large Investments, Toyota Argentina said. The factory has been making vehicles since 1997 and currently builds the Hilux pickup, the SW4 SUV and the Hiace van.

Toyota said the project will create about 3,600 jobs during construction and about 2,600 once upgrades are complete. More details, including production plans, are expected soon.

What could be built

Automotive News, cited by Electrek, reports that an all-electric Hilux is a likely candidate. Toyota makes the Hilux EV in Thailand and ships it to Europe, Asia, Australia and other regions.

Why now

Chinese automakers BYD, Geely and Chery have come to dominate lower-cost EV sales in Latin America. BYD sold 85,800 vehicles in the region through July, according to MarkLines data cited by Electrek, nearly 60% of the 147,493 electric vehicles sold there in the same period.

Argentina's economy minister, Luis Caputo, said the plant would generate about $1.28 billion in annual exports, with roughly 70% of production going to foreign markets.

Toyota calls its approach "multi-pathway": gas, hybrid, plug-in hybrid, battery-electric and fuel cell vehicles all stay in the lineup. But the company is adapting. Electrek reports that Toyota, like many global automakers, is increasingly tapping Chinese batteries, software and other components to stay competitive.

The shift extends beyond Argentina. Toyota broke ground on a Lexus EV plant in Shanghai last summer, with the facility set to open in 2027. The company says the factory will operate at "Lexus speed," using advanced methods such as gigacasting to lower costs and raise output. In China, the bZ3X, Toyota's best-selling EV there, reportedly sources about 90% of its parts locally.

Toyota's global EV sales reached 267,649 through August, Electrek reports, more than twice its total for the same stretch in 2025.

Why it matters

Latin America is where Chinese brands are setting the price bar. A Toyota EV built in Argentina, with local support and export volume, is a direct answer to that pressure. For anyone watching Toyota's EV timing, this plant is one to track: the company is moving faster than its usual pace.

• Argentina
• BYD
• electric vehicles
• Hilux
• RIGI
• Toyota