Toyota Motor Corp (7203) on Wednesday announced plans to invest as much as BRL 1.7 billion ($337.7 million) in the production of a new hybrid, flex-fuel compact car in Brazil, which, beside its electric engine, will run on both gasoline and ethanol.
The announcement was made during an event attended by Toyota’s Brazilian head, Rafael Chang, and Sao Paulo Governor Tarcisio de Freitas.
“Toyota believes in the Brazilian market and continues to invest in technology and innovation to meet consumer needs,” Rafael Chang was quoted as saying by Reuters.
“It is a sustainable solution that also creates jobs and economic development”.
According to the Sao Paulo state government, the new compact car will be manufactured at Toyota’s Porto Feliz facility, an initiative that will create 700 jobs.
The new vehicle is expected to be launched in Brazil next year and sold in 22 Latin American markets.
The shares of Toyota Motor Corp (7203) closed 0.52% (JPY 9.5) lower at JPY 1,813.5 in Tokyo on Thursday, with the auto maker’s total market cap now standing at JPY 24.6 trillion.
The shares of Toyota Motor Corp went down 13.91% in 2022, compared with a 9.37% loss for the benchmark index, Nikkei 225 (N225).
The company’s stock has inched up 0.05% so far this year.