Argentina Approves Toyota's US$1.253 Billion Hybrid Vehicle Plant Project

en.Wedoany.com Reported - On October 22, the Argentine government published Resolution No. 1848/2026 of the Ministry of Economy, approving the inclusion of a US$1.253 billion expansion project for electrified vehicle production facilities by the Argentine subsidiary of Japan's Toyota Motor Corporation in the Large Investment Incentive Regime (RIGI). The project is located in Zárate, Buenos Aires Province, and plans to build a third plant within the existing automobile manufacturing base to produce non-plug-in hybrid vehicles, with the first model being a hybrid pickup truck.

According to the approved investment plan, the project's eligible investment amount is over US$1.2529 billion, to be implemented by Toyota Argentina S.A. Sucursal Dedicada, a dedicated project entity established by Toyota Argentina. The expansion is located at kilometer 81 of National Route 12 in Zárate, covering the construction of new energy vehicle production facilities, assembly, and complete vehicle manufacturing. The project intends to adopt full hybrid technology, initially producing pickup truck models, while retaining the possibility of producing sport utility vehicles in the future.

Toyota plans to invest approximately US$669.6 million in local suppliers for the construction of the new plant and internal production equipment, accounting for 53% of the project's total eligible investment, exceeding the 20% minimum ratio required under the RIGI regime. According to the filing materials, approximately 70% of the project's vehicle output is expected to be destined for export markets.

The investment plan specifies that approximately US$19.5 million is planned to be invested in the first year after project approval notification, and approximately US$147.75 million in the second year, totaling approximately US$167.25 million over the two years. Toyota must complete the required minimum eligible investment amount by September 30, 2028. The Argentine Ministry of Economy resolution also approved the list of capital goods and information and communication equipment that the project may procure under the RIGI import incentive provisions.

Toyota Argentina submitted its application to join the RIGI on June 8, 2026, received support from the project evaluation committee on September 30, and the Ministry of Economy formally signed the approval resolution on October 21. The regime-recognized project accession date is September 29. The relevant tax and import incentives apply only to the production facilities formed by this new investment, and the new expansion project must maintain independent operational and financial accounting from the existing automobile manufacturing business.