Masahiro Inoue, the President of Toyota in Latin America, expressed concerns to the local Veja outlet about Brazil’s high cost of cars.
Having started working at Toyota in 1987, he was sent to Brazil in 1992 to study the local economy, arriving during a challenging time of hyperinflation, a shock coming from a non-inflationary Japan.
This experience, he says, greatly aided his career as not all Japanese Toyota employees understand Brazilian economics or Latin American culture.
The pandemic has reduced car production in Brazil due to a lack of parts, leading to a difficult period of supply correction, decreased demand, and high-interest rates.
However, thanks to foreign markets, their factories operate in three shifts.
While the government’s subsidy program did stimulate consumer demand in the short term, the President of Toyota Latin America underlined the critical need for Brazil to reform its tax structure to achieve sustainable growth.
This is especially important considering the cost of cars in Brazil is higher than in many other countries.
He admits convincing Toyota’s headquarters that investing in Brazil is worthwhile is a challenge.
If Toyota makes a wrong investment, shareholders will apply pressure, making investing in China and the United States easier.
His role is to convince them that investing in Brazil is worth it.
However, he faces difficulties proposing projects to executives in Japan without clear visibility on regulations, including taxes.
Brazilian President Luiz Inácio Lula da Silva said in March 2023 that he wants the automotive industry to produce more in the country and import fewer vehicles.