Honda Motor Co announced its plans to build a car plant in Brazil. The investment will cost the Japanese car manufacturer USD 440.55 million and is expected to begin operations by 2015. The plant, which will be located in Itirapina, a city near Sao Paulo, will employ 2,000 workers and produce 120,000 vehicles annually, doubling Brazil's yearly production of Honda automobiles to 240,000 vehicles. This Latin American country is the fourth-biggest car market in the world. Carmakers that invest in Brazil enjoy tax breaks, a move that the Brazilian government initiated last year in an effort to boost foreign investment.

Honda experienced weak domestic sales in Brazil but its operating profit for the June quarter still increased by 5.1% to USD 1.9 billion due to strong demand in the US and Asian markets. Car demand is expected to rise in the Brazilian market, however, as the country gears up to host two upcoming major sporting events-the World Cup next year and the Olympic Games in 2016.