Honda evaluating plans for a second plant in Brazil to make Brio, compact SUV

31/05/2013 - 15:45 | Honda | Shrawan Raja

With the aim of expanding its product range in Brazil, one of the world's leading growth markets, and in the South American region, Honda is considering a new manufacturing plant in Brazil according to a report in the Valor Economico.

Honda Brio Presentation Slide

Currently Honda has a plant in Brazil, in Sumaré (SP), operating at a production capacity of 140,000 units per annum making the Fit (Jazz), City and Civic models. There maybe little or no chances of capacity expansion at this site.

In Campana, Argentina, Honda has been operating a plant since 2011 to produce the City. The Japanese brand also produces motorcycles in the region at its Florencio Varela facility.

Masahiro Takedagawa, the ex-CEO of Honda India and the current president of Honda South America, confirmed in an interview to the newspaper that there is a possibility of a new plant in Brazil. Takedagawa said : "We have to grow and, of course, we are deeply studying this possibility."

He said ten cities in Brazil have expressed interest in hosting the facility. The new plant could produce the Honda Brio hatchback and is speculated that it could also serve as a manufacturing center for a compact SUV. Honda's current entry level car in South America is the Fit (Jazz).

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