Honda bets big on Brazil, opens R&D centre

Honda is betting big on the potential of the Brazil automotive market and is aggressively driving plans to increase localisation levels. Its Brazilian subsidiary, Honda Automóveis do Brasil (HAB) opened its new Research & Development Center in Sumare today. The new unit is in line with the carmaker’s global strategy to promote simultaneous development in various countries  to provide global products with local differentials

With investments of R$ 100 million, the unit aims to enable the development of models that meet the specific demands of the Brazilian market, in addition to increase the localisation levels of components and technologies. The unit begins operations with approximately 300 employees who will work in the Engineering, Purchasing and R&D departments.

Since 2008, when Honda began producing engines in Brazil, the company already had laboratories for engine tests in Sumaré. In this expansion, a new laboratory was built and equipped with two chassis dynamometers and pollutants emissions system. The equipment will help  develop components, engines and transmission systems, besides conducting durability test, emissions and consumption measurement.

Other structures and technologies such as dimensional measurement, which contributes to the development of items for vehicle exteriors and interiors, and the laboratory of materials, which allows validation of raw materials and local components, make the new unit one of the main Honda’s R&D Centres outside Japan and the  US.

"The decision to strengthen our R&D capabilities reflects our commitment to develop products that meet the expectations of the Brazilian customers. Our goal is to increase the level of components localisation in the next two years and to develop new versions and specific models for our market," said Luis Gazzola, general manager of R&D of Honda Automóveis do Brasil.

Honda has big plans for its business growth in Brazil. Last year HAB announced the construction of its second factory in the city of Itirapina, in São Paulo, with production capacity of 120,000 cars per annum. The new plant will start operations in 2015.