Honda Ramping Up Civic and Fit Production in Brazil

13 November 2005

Honda Brazil

Honda is planning an 80% increase in the production capacity of its plant in São Paulo, Brazil, from 56,000 units to 100,000 by 2008. By the beginning of 2007, Honda Brazil will have bumped production to an interim 80,000-plus units.

Honda estimates the total investment in expanding the plant, which produces the Civic and compact Fit, at around $US 100 million.

South American sales for the Civic and Fit have been robust. The automobile market in Brazil regained sales momentum beginning in 2003, and in 2004, overall automobile sales in Brazil grew 9% compared to the previous year, reaching approximately 1.48 million units.

Honda’s sales in 2004 grew faster than the growth rate of the overall market and reached 50,692 units—a 58% increase compared to 2003. In 2005, Honda increased production by operating its plant on 3-shifts, and year-to-date sales from January to October reached 46, 641 units—a 14% increase compared to the same period a year ago. Honda expects to achieve an all-time automobile sales record in Brazil in 2005.

Earlier this year, Honda president Takeo Fukui announced that the company would develop a FlexFuel vehicle for Brazil capable of running on any percentage of ethanol, including E100, by the end of 2006. (Earlier post.)