Honda to spend millions on expanding operations in Brazil
Japanese auto major Honda has announced plans to expand their operations in the Brazilian market and they would be spending close to USD 100 million on this investment. The plan is to expand auto production facilities in Brazil and tap growing demand for vehicles in South America amid a regional economic upturn.
They would be enhancing the Output capacity at Honda’s plant from the current level of 56,000 units a year to more than 80,000 units by the beginning of 2007. This would be further expanded to 100,000 units in 2008. Brazilian auto market is growing rapidly as the overall auto sales in Brazil grew 9 percent last year.
Honda sales itself outpaced the market by jumping 58 percent. There is huge demand for the companyâ€™s Civic and Fit models. They are currently managing these additional demands by operating the plant on three shifts, which helped left year-to-date sales 14 percent from last year to 46,641 units. These new planned investments would add welding, painting and assembly lines to the existing plant.
Honda, which is predicting an all-time sales record in Brazil this year, also raised its full-year profit forecast to 490 billion yen ($4.2 billion) profit, from an earlier forecast for 470 billion yen ($4 billion).