Toyota Motor Corp. said Wednesday that it will invest 1.7 billion real, or around 45 billion yen ($334 million), in a plant in Brazil to manufacture small hybrid vehicles running on ethanol and other fuel.
Vehicles that can operate on ethanol, gasoline or the combination of both are spreading in Brazil.
The leading Japanese automaker believes that it can anticipate demand for such eco-friendly small cars.
According to automotive media outlets, the hybrid vehicle model expected to be manufactured by Toyota at the Brazilian plant will be based on the Yaris Cross compact SUV.
For its investments, Toyota will accept assistance offered by the state of Sao Paulo, where the plant is located, for the development of low-pollution vehicles, Nippon reports.
