Toyota is putting serious money behind Argentina, announcing a $1.34 billion investment to develop a plant capable of producing a fully electrified vehicle.

The project, in Zárate in Buenos Aires province, has been approved under Argentina’s RIGI incentive scheme for major investments and represents, according to Economy Minister Luis Caputo, the largest single investment in Argentina’s automotive industry.

And Toyota isn’t planning to build cars there simply for the domestic market. Caputo says the project is expected to generate around $1.28 billion in annual exports, with approximately 70% of production destined for overseas markets.

The investment should also create more than 3,600 jobs during construction, followed by more than 2,600 direct and indirect positions once the facility is operational.

For Toyota, the move builds on an established manufacturing presence rather than starting from scratch. The Japanese giant has operated its Zárate plant since 1997, where it currently produces the Hilux pickup and SW4 SUV. Production of the Hiace van also began there in 2024.

The timing is significant. Global carmakers are increasingly looking towards Latin America as they attempt to navigate an industry being reshaped by electrification, shifting supply chains and increasingly fierce competition from Chinese manufacturers.

Toyota isn’t alone in expanding its Argentine footprint. Renault recently announced a new pickup that will be fully assembled at its Córdoba plant, underlining the country’s growing importance as a regional manufacturing base.

For Argentina, Toyota’s investment represents a major injection of capital, employment and export potential. For Toyota, it provides another manufacturing base from which to serve international markets while expanding its electrified vehicle production.

The global automotive industry is changing rapidly. And with $1.34 billion committed to Argentina, Toyota appears determined to make sure it has a manufacturing base ready for whatever comes next.