Nissan Motor announced plans to spend BRL750m (US$186m) over the next three years to produce a new local model at its Resende plant in Brazil, just west of Rio de Janeiro.
The company plans to produce the Nissan Kicks, a new urban SUV, for sale locally and for export worldwide, according to group CEO Carlos Ghosn.
The new line will create an aditional 600 jobs at Resende.
Ghosn said the economic recession and political crisis had driven auto sales in Brazil lower by a quarter last year. He added that this remained a key strategic market for Nissan and the brand had expanded market share even as sales declined.