Honda’s Chief Executive Takanobu Ito has announced plans to bring the company’s Acura luxury brand line-up to Brazil, reports Reuters. The news was unveiled at the Sao Paulo auto show. Acura should arrive in Brazil starting in 2015.
The luxury brand launched in the US and Canada in March 1986, later arriving in Hong Kong (1991), Mexico (2004) and China (2006). Honda had intended to introduce the brand in its home market of Japan several years ago but plans were postponed due to the financial crises in 2008.
The Japanese OEM is also updating its Fit and City small car offering in Brazil and plans to introduce a compact SUV on the market as part of wider update of its line-up starting in 2014. Overall, Honda is aiming to boost its vehicle sales in Brazil from about 93,000 last year to 1 million over the next five years.
Brazil’s luxury segment has been growing fast, with sales soaring nearly sevenfold in the past five years, according to Reuters. Such growth is attracting new players. GM, for instance, is considering launching its Cadillac brand in the country and BMW is pushing ahead with plans for a new plant. Sales of luxury models may be growing, but volumes remain low; Reuters claims that luxury vehicles account for a mere 1.3% of sales in the country. Neither Honda nor GM intends to build its luxury offerings in the country just yet.
