Honda Motor will pour 1.6 billion reais ($300 million) into its Brazilian motorcycle factory through 2029, betting on continued growth in Latin America’s largest two-wheeler market despite mounting strain on existing operations.
The Japanese manufacturer plans to add production lines and upgrade equipment at its Manaus facility, which currently operates above 90% capacity with workers on constant overtime. Annual output is set to climb from 1.4 million motorcycles to 1.6 million by next year, with the company hiring 350 additional workers to reach a total workforce of roughly 9,000.
The expansion comes as Brazil’s motorcycle sales surged 9% in early 2025, with the market reaching 1.88 million units. Honda already commands more than two-thirds of Brazilian motorcycle sales, giving it an overwhelming lead over rivals in a market driven by delivery services and urban congestion.
Yet the investment raises questions about Honda’s strategy. The company has avoided firm commitments on electric motorcycles for Brazil, even as it introduces battery-powered models in other markets. The Manaus plant, which began operations in 1976 and exports to 17 countries including the US and Australia, produces 19 gasoline-powered models ranging from 110cc to 1100cc.
The four-year spending plan represents a measured expansion for a facility that has manufactured more than 31 million motorcycles over nearly five decades.
