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Toyota Starts Significant Industrial Change in Brazil with Closure of Indaiatuba Factory, Expansion of Sorocaba, and Arrival of New Hybrid and Electrified Models, Marking One of the Largest Restructuring Cycles for the Brand in the Country.
Toyota confirmed it will end operations at the Indaiatuba factory in the countryside of São Paulo in the second half of 2026, closing a cycle of 27 years of Corolla sedan production at the facility.
The decision is part of an investment plan of R$ 11 billion until 2030 in Brazil, which includes new hybrid vehicles, expansion of the Sorocaba complex, and the launch of models such as Yaris Cross, Hiace, and Corolla GLi Hybrid.
With the change, Corolla production will be transferred to Sorocaba, where the automaker claims it will concentrate its main operations in the country.
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The company indicated that the approximately 1,500 employees from Indaiatuba may be relocated and that 500 more positions are expected to open by 2026 due to the expansion of production capacity.
End of Production in Indaiatuba and Start of a New Cycle for Toyota
Opened in September 1998, the Indaiatuba plant was built to exclusively produce the Corolla and has assembled more than one million units since then.
The definitive closure of activities is scheduled for the second half of 2026, in a gradual process that will be conducted between 2025 and 2026.
Production will be completely relocated to Sorocaba, where Toyota is preparing a second manufacturing unit.
According to company statements, this new facility will be responsible for receiving the next generation of Corolla and other projects yet to be detailed.
The manufacturer states that concentrating operations in Sorocaba relates to goals of efficiency, modernization, and the adoption of hybrid and electrified technologies.
Sorocaba Gains Expansion and New Strategic Investments
The R$ 11 billion investment announced by the automaker foresees the expansion of the Sorocaba complex and the strengthening of the Porto Feliz engine plant.
The first stage of the plan, until 2026, includes around R$ 5 billion aimed at preparing new assembly lines and developing flex hybrid models.
Currently, Sorocaba produces the Corolla Cross and Yaris, in addition to vehicles intended for export.
With the expansion, the production of the Corolla sedan will also be incorporated into the complex, which, according to Toyota, is expected to take a central role in Brazilian operations.
Yaris Cross Drives a New Phase for Toyota Hybrids
One of the highlights of the new cycle is the Yaris Cross, a compact SUV that will be produced in Sorocaba based on the DNGA platform, a simplified version of the brand’s global architecture.
Toyota announced that the model was planned for launch in October 2025, in combustion and flex hybrid versions.
However, in September 2025, the Porto Feliz engine factory suffered damage from storms that hit the region, leading to a temporary halt in engine production and affecting the launch schedule.
The company stated it would temporarily use engines imported from Japan to maintain the production of hybrids and gradually resume the local production pace.
To date, Toyota has not announced a new date for the start of Yaris Cross sales at dealerships but keeps the model within the current industrial planning.
Hiace and Corolla GLi Hybrid Expand the Portfolio in Brazil
Toyota also confirmed the arrival of the Hiace, a van imported from Argentina equipped with the 2.8 turbo diesel engine used by the Hilux.
The model started being offered in Brazil in a minibus configuration for up to sixteen occupants, aimed at companies, rental services, and passenger transport.
Other versions, such as van and ambulance, are planned. Another new addition is the Corolla GLi Hybrid, the entry-level version of the hybrid flex sedan.
The configuration was launched in 2025, targeting direct sales audiences, such as taxi drivers and people with disabilities.
The model uses the hybrid setup of 1.8 with 122 combined hp and includes the Toyota Safety Sense safety package.
Relocation and Expansion of the Workforce
Toyota states that the approximately 1,500 employees from Indaiatuba will have the option to transfer to Sorocaba, with no mass layoffs expected during the process.
Relocation is expected to occur between mid-2025 and the end of 2026.
According to the company, the expansion of the Sorocaba complex is expected to generate 500 new direct jobs by 2026 and up to 2,000 additional positions by 2030, in addition to jobs created in the supply chain.
Training and skills development programs are planned to adapt workers to the new lines focused on hybrid vehicles and the future generation of Corolla.
Reorganization Continues Movement Initiated with Closure in the ABC
The closure of the Indaiatuba factory occurs after the deactivation of the São Bernardo do Campo unit, completed in 2023.
Opened in 1962, the ABC paulista plant was Toyota’s first factory outside Japan and produced vehicles like the Toyota Bandeirante for over 40 years.
The restructuring of Brazilian operations is part of a reorganization process adopted by the automaker in the country.
The company indicated at the time that the relocation of activities aimed to adapt the industrial park to productive and technological demands.
With new investments, the expansion of Sorocaba, and launches like Yaris Cross, Hiace, and Corolla GLi Hybrid, Toyota is bringing together elements that, according to industry analysts, may influence the brand’s positioning in the national market.
In your assessment, which of these movements will most impact the automaker’s strategy in Brazil?
Como podem parar de fabricar, nos empurrar isso goela abaixo, a paralização do sedan médio mais vendido do mundo carro de alta qualidade e acabamento. Não teremos peça de reposição?
Não vai parar de fabricar meu senhor, a fábrica vai fechar mas a produção vai ser transferida para Sorocaba. Está escrito bem no começo da matéria.
E o contingente de funcionáqrios será todo transferido? Parabéns a marca pelo lançamento do Yaris Cross e do Corolla gli híbrido, espero que venham com preços bem competitivos.
Belo título de reportagem (Toyota revela quando vai fechará fábrica)