On Sunday, March 3, 2024, Vice President Geraldo Alckmin announced Toyota’s $2 billion investment in Brazil.
This initiative aims to create 2,000 new jobs. Alckmin, also the Development, Industry, Commerce, and Services Minister, will join an event in Sorocaba, São Paulo.
Here, Toyota is said to detail this significant investment.
Alckmin attributes this financial infusion to Brazil’s Mover and Future Fuel programs. These initiatives focus on revitalizing the automotive sector.
He shared this update on X (formerly Twitter).
The Mover program, launched by President Lula’s government, promises R$19 ($3.8) billion in tax breaks over five years for eco-friendly automotive investments, updating the previous Rota 2030 plan.
Future Fuel aims to redefine biofuel use in vehicles, including increasing ethanol in gasoline to 30% and boosting biodiesel in diesel annually by 1%.
These policies, introduced in late 2023, are undergoing congressional review.
Despite some resistance, particularly against the Future Fuel from the oil industry, the government strives for timely legislative approval, especially for the Mover program, to maintain its momentum.
Background – Toyota’s $2 Billion Boost to Brazil’s Economy
In February, Volkswagen announced a significant increase in its Brazilian investments, planning to add R$9 billion ($1.82 billion) by 2028.
This move will push the company’s total investment to R$16 billion ($3.23 billion) in five years.
Starting in 2022, the initial phase involved R$7 billion ($1.41 billion).
This development follows announcements from BYD and General Motors, who have committed R$10 billion ($2.02 billion) to Brazil.