Honda announces investments in Brazil’s automotive sector

An executive told on Friday that Japanese automaker Honda will fund 4.2 billion reais ($807.74 million) in its Itirapina plant in Brazil by 2030. The executive further said that the firm seeks to create a hybrid-flex vehicle in South American nations.

Honda recently revealed plans for substantial investments in Brazil’s automotive industry, joining a wave of automakers committing to the country’s market. This announcement comes amid similar moves by major players like Volkswagen, General Motors, Stellantis, and Toyota.

Significant Investments in Brazil’s Automotive Sector

Brazil’s government reports that automakers have pledged nearly 130 billion reais in investments for the coming years. 

Honda’s commercial vice president in Brazil, Roberto Akiyama, highlighted that the company’s investments will be directed towards new technologies and the development of a hybrid model specifically tailored for the Brazilian market. This hybrid vehicle is designed to run entirely on ethanol, aligning with Brazil’s focus on renewable energy sources.

Expansion Plans at the Itirapina Plant

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Akiyama outlined Honda’s ambitious production goals, indicating plans to increase annual vehicle production at the Itirapina plant to 150,000 units by 2030, up from 100,000 units this year. These vehicles will cater to both domestic sales and export markets.

New Hybrid-Flex Vehicle and Entry-Level SUV

In addition to investing in hybrid technology, Honda intends to introduce a new entry-level SUV to the Brazilian market in 2025. 

This strategic move underscores Honda’s commitment to expanding its product offerings and market presence in Brazil.

Meeting with Brazilian President

Akiyama’s announcement follows a meeting with Brazilian President Luiz Inacio Lula da Silva in Brasilia, demonstrating Honda’s engagement with key stakeholders and decision-makers in the country. 

This collaborative approach underscores Honda’s commitment to navigating Brazil’s automotive landscape and contributing to its economic development.