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.
