(Picture: Disclosure Honda)
Honda’s Motorcycle Manufacturing Hub in Manaus
Reaching Manaus by car or truck is impossible, locals say, as there are no suitable roads to travel to or from this city of 2.2 million inhabitants by land. The only option is by plane. However, as one of the oldest cities on the continent (founded in 1669), its residents know from their ancestors that the Rio Negro is the traditional way to arrive and depart. The river remains the primary connection for cargo to its over 600 industries, as the Manaus Free Trade Zone is one of the oldest and most important in the world.
Far from the rest of the world, a four-and-a-half-hour flight from São Paulo, and with an urban center that displays its colonial heritage alongside modern design (featuring tunnels to ease traffic flow), the city also mirrors poverty seen in São Paulo, albeit on a smaller scale.
The most significant company in this city that defies nature is a Japanese multinational: Honda, which has its main motorcycle factory globally located in Manaus.
The Honda Motos complex occupies 750 hectares of completely forested and mountainous terrain. If it weren’t for the 6,500 motorcycles that leave here daily, supplying 75% of the massive Brazilian market (1.4 million motorcycles per year, with Honda holding a 75% market share), this factory could easily be a tourist attraction with its industrial buildings situated at different elevations on the hills. It spans 350,000 square meters, equivalent to 350 hypermarkets placed side by side on a mountain.
The production rate is one motorcycle every 19 seconds. This factory produces 18 models, ranging from the smallest engine sizes to versions exceeding 300cc. Manufacturing began modestly in 1976, 49 years ago, and steadily increased, reaching 1.8 million units in 2011. Today, they operate at a rate of 1.4 million motorcycles per year, more than three times the entire motorcycle market of Argentina. From 1976 to the end of last year, Honda Motos of Brazil manufactured 30 million motorcycles.
The factory has a significant degree of integration, housing everything from casting to engine production. Even so, it relies on a substantial network of over 110 suppliers, including 15 Japanese companies.
Honda Argentina: From Local Production to Regional Supplier
One of the suppliers that arrived just under a year ago is Honda of Argentina, which replicates motorcycle production on a ten times smaller scale at its factory in Campana. There, 900 workers (compared to 9,000 in Manaus) dispatched 110,000 motorcycles last year.
As a brand, Honda is the number one in Argentina, with a 21% market share. This year, it anticipates a significant increase in its production, as the Argentine motorcycle market is estimated to reach around 600,000 units, and Honda aims to capture 23% of that market.
Key Investment in Parts Production
However, a crucial part of Honda’s production in Campana is a plastic parts production division, the result of a $15 million investment completed in 2024. From this division, one million plastic pieces were shipped to the Manaus factory last year, a figure expected to grow to 1.3 million pieces this year. They supply parts for the Tornado and Pop models, two of the most in-demand in the region.
Measured in foreign currency, these exports amounted to $4.5 million in 2024 and are projected to reach around $10 million this year, according to Viviana Daleoso, Director of Corporate Relations and Sustainability at Honda Argentina, speaking from Manaus.
“Investment plans are not exhausted with this project; we have new plans to advance with parts production and investments that we estimate to announce by mid-year,” anticipated the Argentine executive.
Argentina’s Motorcycle Market and Honda’s Position
Honda established its first factory in Argentina in 2006 in Florencio Varela, where motorcycle production began and continues today. But in between, there was a significant investment in the purchase and installation of a new factory in Campana, along Route 9, which required $250 million. For nearly a decade, this plant produced two car models: the Honda City and the Honda HRV.
This history abruptly ended in August 2019 when the multinational decided to close car factories with lower production in various parts of the world, including its Buenos Aires plant.
While HRV production continued until early 2020, Honda’s announcement signaled the end of a cycle. It coincided with Alberto Fernández and Cristina Kirchner winning the PASO primaries, amidst a sharp decline in automotive production in the country.
Future Prospects for Honda in Argentina
Even so, there are still expectations in Campana to reactivate car production. “Honda currently has no plans to resume its vehicle production, but there could always be some project in the future,” added Daleoso.
Resumo em Português:
A principal fábrica de motocicletas da Honda está localizada em Manaus, Brasil, atendendo a grande parte do mercado brasileiro. A Honda Argentina, que encerrou a produção de carros em 2019, agora exporta peças plásticas para essa fábrica em Manaus, fruto de um investimento de US$ 15 milhões e com previsão de gerar US$ 10 milhões em exportações este ano. A planta argentina, em Campana, também continua a produzir motocicletas e planeja aumentar sua produção.
Resumen en Español:
La planta principal de motocicletas de Honda se encuentra en Manaos, Brasil, abasteciendo una gran parte del mercado brasileño. Honda Argentina, que dejó de fabricar automóviles en 2019, ahora exporta piezas plásticas a esta fábrica en Manaos, gracias a una inversión de US$ 15 millones y con una previsión de generar US$ 10 millones en exportaciones este año. La planta argentina, en Campana, también continúa produciendo motocicletas y planea aumentar su producción.
