The new plant will manufacture what Toyota describes as an electrified vehicle, with the minister specifying a 100 percent electrified model. While the company has not confirmed specifications, industry sources indicate the project centers on the ninth-generation Hilux pickup, including a battery electric variant and a diesel model with 48-volt mild hybrid assist. The battery electric version would become Argentina’s first domestically produced pure electric vehicle at commercial scale, initially targeting mining operations and industrial applications where predictable routes and dedicated charging infrastructure exist.
Toyota projects annual exports of $1.28 billion, representing approximately 70 percent of planned output from the facility. The export orientation aligns with Argentina’s structural need for foreign currency generation and positions the plant as a regional manufacturing hub within Toyota’s Latin American network. The investment contemplates creation of 3,600 construction jobs during the build phase and 2,600 direct and indirect positions during operations.
The project qualifies for RIGI incentives under the technology sector classification, specifically the mobility category encompassing pure electric and hybrid propulsion systems. The government clarified this interpretation in February 2026, opening automotive electrification to the regime’s benefits. Toyota has operated in Zárate since 1997, currently producing Hilux, SW4 and Hiace models. The company manufactured 180,352 units in 2025, exporting 142,979 vehicles to more than 20 Latin American markets. The electrified vehicle investment marks Toyota’s first major capital deployment in Argentina since a $1 billion expansion approximately a decade ago.
This article was curated and published as part of our South American energy market coverage.
