According to sources contacted by the Japanese business weekly, Toyota is currently negotiating a deal with the Brazilian federal government and the Sao Paulo state government on preferential benefits for a locally assembled Prius.
The plan is to have local production to begin in 2018, meaning that this is likely to be the next generation Prius.
The report also adds that Toyota intends to assemble around 1,500 units of Prius models per year at its Sao Bernardo do Campo plant near Sao Paulo. The plan also involves moving production of Hilux parts out to Argentina, to make way for the new project.
Local assembly will allow Toyota to lower the selling price of the Prius in Brazil, which is currently slapped with a 35 percent import duty.
Japan remains the primary source for the Prius, but the model is also assembled in Thailand and China.