Honda announces new investment cycle of BRL 4.2 billion in Brazil

President Luiz Inácio Lula da Silva hosted a meeting this Friday (19), at the Planalto Palace, with Honda’s president for America, Arata Ichinose. The Vice president and Minister of Development, Industry, Trade, and Services, Geraldo Alckmin, and the Chief of Staff, Rui Costa were also at the meeting, which lasted about one hour.

President Lula listened to Ichinose’s presentation about the history of Honda’s presence in Brazil. The company started operating in the country over 50 years ago, and maintains a motorcycle factory in Manaus (AM) that has manufactured over 30 million units; vehicle production centers in Sumaré and Itirapina (SP), a wind farm in Xangri-La (RS), as well as an office in São Paulo (SP). Honda has invested over BRL 9 billion in Brazil in the automotive sector alone.

Ichinose highlighted the company’s commitment to completing its transition to renewable energies by 2050 and that it sees ethanol technology as a factor that converges with its decarbonization policy. The businessman added that a new hybrid-flex SUV model will be produced in Brazil to be launched in 2025.

NEW CYCLE - Ichinose announced to President Lula Honda’s new investment cycle in Brazil: BRL 4.2 billion between 2024 and 2030, concentrated on introducing the new hybrid vehicles technology and developing a chain of key supplies for these models. The company expects these investments to generate 1,700 new direct and over 3,500 indirect jobs. The Itirapina plant is due to start a second production shift next Monday (22).

President Lula welcomed Honda’s new investments in Brazil. He commented on the development brought by the automotive industry and the role of the government in promoting a good environment for investments with legal, economic, fiscal, and social stability. He highlighted the need for companies to offer lower cost models to tend to the large potential market conformed by the Brazilian middle class. He also pointed out that the average income of Brazilians increased by 11.5% in 2023 (IBGE data), the highest value in 12 years.

Lula also spoke of the great capacity for exporting vehicles produced in Brazil to other countries in Latin America. He underscored Brazil’s commitment to decarbonizing the economy through the production of alternative and renewable energies. “Energy transition is an extraordinary opportunity in Brazil and Honda will contribute to this process”, stated the President of the Republic.

130 BILLION - President Lula and Vice president Alckmin signed the celebratory plaque marking Honda’s new cycle of investments in Brazil. On his way out of the event, Alckmin gave a quick interview to the press and celebrated the moment for the automotive sector in the country. “This is an important investment. Honda is growing from 80 thousand to 100 thousand vehicles. We are talking about a production increase of practically 25%”, he stated. “We want an innovative, competitive, and exporting industry. We can provide credit support, offering financing funds with guarantees for exportation. And the response has been great. With these investments from Honda, we are now close to BRL 130 billion already confirmed in the automotive industry alone”, Alckmin added.

MOVER - Honda’s representative in Brazil highlighted that the investments announced by the company were motivated by the Federal Government’s Green Mobility and Innovation program (Mover), designed to promote the expansion of investments in energy efficiency. The program includes minimum recycling requirements for vehicle manufacturing and charges less taxes from companies that pollute less, instating the Green Tax for Industrialized Products (IPI Verde). “After Mover was clearly defined, we saw the need to define our investments clearly, too”.