Nissan earmarks $575m for investment in Brazil

Nissan, the renowned Japanese automobile manufacturer, is set to make a substantial investment of BRL2.8 billion ($575 million) in its Resende plant in Rio de Janeiro. This investment is aimed at expanding production to accommodate two new sports utility vehicle (SUV) models and the development of a turbo engine. The announcement was made during a ceremony held at Nissan’s Resende Industrial Complex, attended by 2,400 individuals, including Nissan CEO Makoto Uchida and Claudio Castro, the Governor of Rio de Janeiro.

Makoto Uchida expressed, “Based on Nissan Ambition 2030, the long-term vision that will drive our company, we will be taking into account the needs and realities of Brazil and South America. We have a local strategy that will ensure our transformation in the next few years.” This investment signifies Nissan’s commitment to the Brazilian and South American markets.

Nissan has a 23-year history in the Brazilian market, and in 2022, the company introduced a second work shift at the Resende Industrial Complex, resulting in an expansion of production and the creation of 578 additional jobs. The Resende Complex, established in 2014, is set to undergo significant upgrades, including the addition of new equipment to facilitate the production of the newly announced models. These vehicles are intended for export to over 20 countries within the South American region, reflecting Nissan’s global outlook and ambition.

Brazil has been a favourable destination for foreign direct investment (FDI), and Japanese companies, in particular, have been actively contributing to the country’s economic development. Glenn Barklie, Chief Economist at Investment Monitor, highlighted that “Japanese companies are a key source of inward investment into Brazil.” In terms of greenfield FDI, Japan ranks as the ninth largest source market for Brazil by the number of projects. These companies are notably involved in various sectors, including automotive, software and IT services, and renewable energy, contributing to Brazil’s economic diversification and growth.