Honda will invest US$100 million to expand its production facilities in Brazil to tap growing demand for vehicles in South America amid a regional economic recovery.
Go deeper with GlobalData
Output capacity at Honda’s plant in Sumare, Sao Paulo state, will be expanded from the current level of 56,000 units a year to more than 80,000 units by the beginning of 2007, and to 100,000 units in 2008, the Tokyo-based automaker said in a statement cited by The Associated Press (AP).
Overall vehicle sales in Brazil grew 9% last year, while Honda’s sales outpaced the market by jumping 58%, the company reportedly said. Demand has been especially strong for the company’s Civic and Fit [Jazz] models, Honda said, according to the report.
The Associated Press said Honda increased production in Brazil this year by operating the plant on three shifts, which helped lift year-to-date sales 14% from last year to 46,641 units. The new investment will add welding, painting and assembly lines to the existing plant.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
