Japanese suppliers in Mexico/Brazil: rush to build plants and increase production
Activities of H-One, Akebono Brake, Jatco, Unipres, Aisin Seiki and Denso
This report summarizes the activities of Japanese suppliers in Mexico and Brazil. Japanese OEMs unveiled their plans to build new plants in both countries one after another. A rush to build plants and increase production by Japanese suppliers in both countries has begun to cope with the trends of the OEMs.
In Mexico, Nissan already has two plants in the states of Aguascalientes and Morelos States. Nissan announced it has plans to build a third plant at the adjoining site of its Aguascalientes plant, in January 2012. Honda is building a 200K-unit plant in Guanajuato State in addition to the existing plant in Jalisco State. Honda's new plant will go on stream in the first half of 2014. Mazda will build a new plant with an annual production of 140K units in Guanajuato State, with plans to start operations within 2013. Besides, Mexico serves as an auto parts export center not only to North America, but also to South America thanks to the customs-free trade between Mexico and Brazil.
The Brazilian market had sales of more than 3.5 million units in 2010. As a result, it has become the world's fourth largest market. It is also expected to have more than 3.5 million units in 2011. As for Japanese OEMs, Toyota is building a new compact car plant in Sao Paulo State where it already has a plant. It plans to start production at an annual production scale of 70K units in the latter half of 2012. Nissan also unveiled plans to build a plant with an annual production scale of 200K units in the state of Rio de Janeiro, which will start running in the first half of 2014.
For the information, Brazil has made the move to raise the so-to-called IPI tax on industrialized products by 30 percentage points for imported vehicles and locally produced vehicles with a low local content since December 16, 2011.