Toyota Strengthens Latin American Presence to Defend Market

Toyota is making its biggest investment ever in Brazil and Argentina as the car market in Latin America heats up. The company’s president for the region, Rafael Chang, confirmed that Toyota will spend $2 billion by 2030 to boost production and develop new models.

This move comes as Chinese car brands, especially BYD and Great Wall Motors, are quickly gaining ground in the region. Toyota’s sales in Latin America reached 487,000 vehicles in 2024. Brazil and Argentina made up 60% of these sales.

In Brazil, Toyota sold over 200,000 cars last year, making it the fourth most popular brand. In Argentina, Toyota has led sales for four years, selling about 90,000 cars in 2024.

The company expects the Latin American car market to grow to between 5 and 6 million vehicles per year in the next few years. To keep up with this growth, Toyota is running its factories in Brazil and Argentina at full capacity.

The company is building a new plant in Sorocaba, Brazil, which will produce 100,000 cars a year—about 50% more than the current plant. Toyota will also add 2,000 direct jobs by 2030 and increase exports to more than 20 countries in the region.

Toyota is also focusing on electrified vehicles. About 13% of Toyota’s sales in Latin America are now hybrids or electric cars. The company believes that hybrids are the best choice for the region right now because charging stations for electric cars are still rare.

In Brazil, Toyota is making hybrid cars that run on ethanol, a fuel that emits about 70% less CO2 than gasoline over its full life cycle.

Toyota Expands Car Rental and Production in Latin America

The company is also growing its car rental business, Kinto, which now operates in 16 countries across Latin America and the Caribbean. In Brazil, Kinto offers 7,000 cars for rent through all Toyota dealerships.

Toyota faces tough competition from Chinese brands, which offer more choices and often lower prices. The company says that competition is good for customers and pushes everyone to improve.

However, Toyota’s leaders stress that clear rules and stable laws are needed for long-term investment. They also point out that global supply chain problems and changing trade rules make it important to have several production centers.

Toyota’s expansion in Brazil and Argentina is not just about selling more cars. It is about creating jobs, supporting local suppliers, and helping the region shift to cleaner vehicles.

The company’s strategy shows how global carmakers are adapting to new rivals and changing markets in Latin America.