"We are talking about over US$1.3 billion. And the RIGI has a characteristic that is very important to us, which is the predictability that the conditions and rules of the game provide in the long term", he stated.
Gustavo Salinas stated that the regime was decisive in advancing the largest investment in the history of the national automotive industry
"We are talking about over US$1.3 billion. And the RIGI has a characteristic that is very important to us, which is the predictability that the conditions and rules of the game provide in the long term", he stated.
The Incentive Regime for Large Investments (RIGI), driven by President Javier Milei, was a decisive condition for Toyota to move forward with a project of over USD 1.3 billion in Argentina, which constitutes the largest investment in the history of the automotive industry in the country.
This was confessed by Gustavo Salinas, president of Toyota Argentina, who stated that the company would not have invested such an amount without the benefits and guarantees of predictability offered by the program.
"The RIGI was an essential element to achieve this", the executive affirmed during the IDEA Colloquium. When asked if the initiative would have progressed without the regime, he was categorical: "Surely not. The RIGI was decisive for this level of investment".
The project involves the development of a new electrified vehicle at the industrial complex that the Japanese automaker has in Zárate, Buenos Aires province. This is the largest investment announced so far by the Argentine automotive industry.
Salinas explained that the volume of committed capital and the time horizon of the venture required conditions of stability that would allow planning operations for decades.
The executive also referred to the country's economic background and the difficulties that companies have historically faced in projecting long-term investments. "Unfortunately, it has not characterized Argentina's history and, looking to the future, for that level of investment, it is very important for us", he added.
The RIGI includes tax stability, customs, and exchange rate stability for 30 years, in addition to tax incentives for projects entering the regime. Regarding the possibility that a future administration might disregard these conditions, Salinas stated: "We do not believe that Argentina will, in any case, go down a path where laws are disregarded, because otherwise, we could not operate".
The performance of exports will allow the Zárate plant to reach a historic maximum production this year. "This year is going to be a historic record year of production for our plant", he anticipated.
About 80% of the vehicles manufactured in the Argentine industrial complex are destined for export. Toyota exports to 23 countries and reorganizes its production volumes based on international demand.
