Annual production capacity to double to 240,000 units in 2015

Honda Automoveis do Brasil Ltda. (HAB), the Honda automobile production and sales subsidiary in Brazil, today announced plans to build a new automobile production plant with annual production capacity of 120,000 units. The new plant is scheduled to become operational in 2015.

The new plant will be located in the city of Itirapina in the state of Sao Paulo (approximately 200km northwest of the city of Sao Paulo), which is approximately 100km northwest of HAB’s existing plant in the city of Sumare. Including the acquisition of the 5.8 million square metre  (m2) site, purchase of equipment and construction of the plant building, the total investment for the new plant is expected to be approximately BRL1 billion (approximately JPY43 billion). The new plant will employ approximately 2,000 associates. HAB is planning to produce Fit-class compact vehicles at the new plant, for which demand is high on a global basis.

Combining the production capacity of the new plant with the existing plant in Sumare, HAB’s total annual automobile production capacity will be doubled from the current 120,000 units to 240,000 units. Moreover, with the goal to strengthen local development capabilities in Brazil and to enhance parts localization, Honda is establishing a new automobile R&D centre within the plant in Sumare before the end of this year. Doubling the production capacity and developing products that accommodate the needs of local customers in Brazil, Honda will deliver more attractive products and enhance its product line-up in South America.

About Honda Automoveis do Brasil Ltda. (HAB)

 

Establishment: May 1996
Capital Investment: R$882.78 million
Capitalization Ratio: 100% Honda South America Ltda.
Representative: Masahiro Takedagawa, President
Location: Sao Paulo, Brazil
Business: Production and sales of automobiles
Products: Civic, Fit, City
Production Capacity: 120,000 units/year
Employment: Approximately 3,500 associates
Lot size: 1.7 million square metres (m2)
Start of Production: October 1997 (Civic)
Cumulative production volume: 1.056 million units (as of the end of 2012)
Cumulative investment amount: Approximately 2.5 billion Brazilian Reais
(as of the end of 2012)

 

About the new automobile production plant of HAB

Location: City of Itirapina in the state of Sao Paulo (approximately 200km northwest of the city of Sao Paulo)
Lot size: 5.8 million square meter (m2)
Production Capacity: 120,000 units/year
Start of Production: 2015
Employment: Approximately 2,000 associates
Investment: Approximately BRL1 billion

Significance: Long-term forecasts for Brazil remain optimistic, despite domestic sales slipping in July. Other automakers recently announcing investments in Brazil include Hyundai and Volkswagen, indicating automakers are still bullish on prospects for the Brazilian vehicle sales and exports going forward. Daimler is also considering reviving Mercedes car production, to address concerns on import taxes.

Contacts

Copyright © 2025 S&P Global Inc. All rights reserved.

These materials, including any software, data, processing technology, index data, ratings, credit-related analysis, research, model, software or other application or output described herein, or any part thereof (collectively the “Property”) constitute the proprietary and confidential information of S&P Global Inc its affiliates (each and together “S&P Global”) and/or its third party provider licensors. S&P Global on behalf of itself and its third-party licensors reserves all rights in and to the Property. These materials have been prepared solely for information purposes based upon information generally available to the public and from sources believed to be reliable.
Any copying, reproduction, reverse-engineering, modification, distribution, transmission or disclosure of the Property, in any form or by any means, is strictly prohibited without the prior written consent of S&P Global. The Property shall not be used for any unauthorized or unlawful purposes. S&P Global’s opinions, statements, estimates, projections, quotes and credit-related and other analyses are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security, and there is no obligation on S&P Global to update the foregoing or any other element of the Property. S&P Global may provide index data. Direct investment in an index is not possible. Exposure to an asset class represented by an index is available through investable instruments based on that index. The Property and its composition and content are subject to change without notice.

THE PROPERTY IS PROVIDED ON AN “AS IS” BASIS. NEITHER S&P GLOBAL NOR ANY THIRD PARTY PROVIDERS (TOGETHER, “S&P GLOBAL PARTIES”) MAKE ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE PROPERTY’S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE PROPERTY WILL OPERATE IN ANY SOFTWARE OR HARDWARE CONFIGURATION, NOR ANY WARRANTIES, EXPRESS OR IMPLIED, AS TO ITS ACCURACY, AVAILABILITY, COMPLETENESS OR TIMELINESS, OR TO THE RESULTS TO BE OBTAINED FROM THE USE OF THE PROPERTY. S&P GLOBAL PARTIES SHALL NOT IN ANY WAY BE LIABLE TO ANY RECIPIENT FOR ANY INACCURACIES, ERRORS OR OMISSIONS REGARDLESS OF THE CAUSE. Without limiting the foregoing, S&P Global Parties shall have no liability whatsoever to any recipient, whether in contract, in tort (including negligence), under warranty, under statute or otherwise, in respect of any loss or damage suffered by any recipient as a result of or in connection with the Property, or any course of action determined, by it or any third party, whether or not based on or relating to the Property. In no event shall S&P Global be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees or losses (including without limitation lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Property even if advised of the possibility of such damages. The Property should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions.

The S&P Global logo is a registered trademark of S&P Global, and the trademarks of S&P Global used within this document or materials are protected by international laws. Any other names may be trademarks of their respective owners.

The inclusion of a link to an external website by S&P Global should not be understood to be an endorsement of that website or the website's owners (or their products/services). S&P Global is not responsible for either the content or output of external websites. S&P Global keeps certain activities of its divisions separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain divisions of S&P Global may have information that is not available to other S&P Global divisions. S&P Global has established policies and procedures to maintain the confidentiality of certain nonpublic information received in connection with each analytical process. S&P Global may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P Global reserves the right to disseminate its opinions and analyses. S&P Global Ratings’ public ratings and analyses are made available on its sites, www.spglobal.com/ratings (free of charge) and www.capitaliq.com (subscription), and may be distributed through other means, including via S&P Global publications and third party redistributors.