Toyota introducing cars that run on ethanol, gasoline in Brazil

Toyota is introducing cars that run on ethanol and gasoline in Brazil, a major Japanese business newspaper reported Tuesday, at a time when such flexible-fuel vehicles are growing in popularity there.

Toyota Motor Corp. spokesman Paul Nolasco declined comment on The Nikkei report.

Later Tuesday, Toyota is set to unveil Corolla subcompacts that run on ethanol, gasoline or a mixture of the two fuels, and plans to switch models the Japanese automakers produces in Brazil to flex-fuel cars, the report said.

A booming ethanol industry has emerged in Brazil since about two years ago, and automakers are all rushing to offer flex-fuel cars there.

Most drivers in Brazil choose ethanol, which is made from corn, sugar cane or other crops and is about half the price of gasaoline in Brazil, and eight out of every 10 new cars sold in the country are flex-fuel models. (AP)