To reach annual sales of 11 million vehicles Toyota enters nearly every market segment, and a prototype recently spotted in Brazil will fill an important gap in the brand's South American range.

Brazilian publication BlogAuto captured the dual-cab test vehicle on a highway near São Paulo, revealing what appears to be a unibody pickup derived from the locally produced Corolla Cross SUV.

Like other car-based utes the new model looks larger than its donor vehicle thanks to an extended wheelbase and revised rear doors. The Corolla Cross measures 4.46 metres long so the ute is expected to reach at least 4.7 metres.

According to BlogAuto and additional local reports two powertrains will be available. Entry-level versions will use a 2.0-litre flex-fuel engine producing about 129 kW paired with a continuously variable transmission featuring 10 simulated gears, a setup borrowed directly from the Corolla Cross.

A hybrid E-Four system is also planned, combining a petrol engine and electric motor at the front axle with a separate electric motor at the rear. For comparison the Brazilian Corolla Cross hybrid is offered only in front-wheel drive with a 90 kW 1.8-litre hybrid powertrain.

Production of the still-unnamed ute is slated to start in the first quarter of 2027 at Toyota's Sorocaba plant in São Paulo state, sharing the facility with the related Corolla Cross.

When launched the model will mark Toyota's first global debut originating from Brazil. It remains uncertain whether the vehicle will be offered outside Latin America.

Local manufacturing will allow the ute to bypass high import duties and gain tariff-free entry across the Mercosur trade zone, positioning it against the Chevrolet Montana, Renault Duster Oroch and possibly the larger Fiat Toro and Ram Rampage.

Interest in utes in South America dates back to the 1980s and 1990s when models such as the Volkswagen Saveiro, Fiat Strada and Chevrolet Montana emerged as two-door pickups based on small hatchbacks like the Gol, Palio and Corsa.

During the 2010s manufacturers shifted away from those light-hatch origins toward larger platforms and four-door configurations.

The Corolla Cross ute may not be Toyota's only unibody pickup project. North American chief Ted Ogawa recently noted the company is studying a RAV4-based ute positioned below the Tacoma.

Such a vehicle could compete with the Ford Maverick in the United States, though approval, timing and export plans remain undecided.