By Brazil Stock Guide – Honda Motor Co. (7267:JP) said Thursday it will invest R$1.6 billion ($290 million) in its motorcycle operations in Brazil through 2029, reinforcing its leadership in Latin America’s largest two-wheeler market. The plan will raise annual capacity at its Manaus plant to 1.6 million units starting in 2026.
Honda’s Manaus factory, opened in 1976, is the company’s most vertically integrated motorcycle unit worldwide, producing frames, wheels, seats and engines in-house. Today, about 6,500 bikes leave the plant each day. The new cycle of investment includes additional lines, high-tech equipment and the creation of 350 new jobs, expanding a workforce that already tops 9,000 direct employees.
Brazil is the world’s fourth-largest motorcycle market and a cornerstone of Honda’s global operations. The company has produced more than 31 million units locally and will mark 50 years in 2026. The new investment underscores Honda’s bet on growing demand for affordable mobility, while the broader auto industry grapples with rising costs and regulatory pressure to decarbonize.
New models and competition
Honda will launch new bikes and updated versions of existing models, emphasizing fuel efficiency, safety features and digital connectivity. The current lineup includes 20 locally made models and 7 imports, covering displacements from 110cc to 1,800cc. The push is aimed at fending off rivals such as Yamaha and Kawasaki, as motorcycles gain traction in urban logistics and daily commuting.
Honda operates more than 1,100 dealerships across Brazil and exports to 17 countries, including the US, Mexico and Australia. Its supply chain spans 120 local parts and raw materials suppliers.