NEW YORK (Kyodo) -- Honda Motor Co. on Tuesday started the construction of its second auto assembly plant in Brazil that is scheduled to open in 2015.
Honda invested about 1 billion real (about $437 million) for the Sao Paulo plant to meet growing demand in Brazil, the fourth largest auto market in the world.
At a groundbreaking ceremony, Honda President Takanobu Ito said the new plant will enable the firm to supply a broad range of products that will exceed the expectations of Brazilian customers promptly and affordably while curbing greenhouse gas emissions.
The new plant with an annual manufacturing capacity of 120,000 units will initially produce Fit compact cars before offering more models. The plant will double the automaker's total annual capacity in the country to 240,000 units.