On Wednesday, Toyota Motor Corp (7203.T) announced it would invest 1.7 billion reais ($337.68 million) to build a hybrid, flex-fuel compact car in Brazil that runs on gasoline, ethanol, and electric power.
In 2019, Toyota unveiled Brazil’s first hybrid flex-fuel vehicle, a variant of its flagship Corolla sedan. Most automobiles in the country can run on 100% ethanol.
Unlike General Motors (GM.N) and Ford (F.N), which have focused on completely electric cars, Stellantis (STLAM.MI) and Volkswagen (VOWG_p.DE) are investing in the technology.
Toyota’s local leader, Rafael Chang, and Sao Paulo Governor Tarcisio de Freitas attended the announcement. Toyota will invest about 1 billion reais through state tax rebates.
“Toyota believes in the Brazilian market and continues to invest in technology and innovation to meet consumer needs,” Chang added. “It creates jobs and economic development and is sustainable.”
The Sao Paulo state government announced that Toyota’s Porto Feliz plant would build engines for the unnamed tiny automobile, creating 700 jobs.
It said the car will be available in 22 Latin American countries starting in 2024 in Brazil.
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