Honda announces R$ 3.3 billion investment in Brazil to expand production in Manaus

Honda has introduced the 2027 line of the City, available in hatchback and sedan versions, with price ranges varying from R$ 117,700 to R$ 156,400. These values position the Japanese compact vehicles in a highly competitive market segment.

This price level offers a wide range of options, including entry-level SUVs, compact SUVs, light pickups, electric compacts, compact sedans, and even mid-size SUVs on promotion. Given this fierce competition, the City must rely on solid arguments to stand out.

The brand's main differentiator lies in its reputation. Honda possesses a strong commercial appeal sustained by reliability, proven mechanics, good market liquidity, and low depreciation—a term the marketing calls 'residual cost.' This combination has established Honda as a desired product, an image built over more than 35 years since imports were allowed.

The manufacturer has achieved a quality level superior to that of other generalist automakers, positioning itself one step below German premium brands. However, the landscape has changed with the rise of Chinese brands, which are no longer seen merely as cheap vehicles of questionable quality, but have reached a sophistication standard comparable to European premium cars.

Despite fluctuations in the automotive panorama, including the increased participation of Chinese brands, Honda has maintained its stability in the Brazilian retail market without needing to modify its production plan or pricing policy. In contrast to other brands that have lost ground to the Chinese advance, Honda has registered sales growth.

Between January and September, the brand registered 82,634 units licensed, surpassing the 73,570 units sold in the same period of 2025, representing a slight increase of over 12%, significantly above the total market's 8%. Although its market share decreased from 4.07% to 3.83% in the same interval, almost all traditional brands saw their shares reduced due to the consolidation of new competitors such as BYD, GWM, GAC, Geely, and Omoda & Jaecoo.

Thus, Honda continues its trajectory in the Brazilian retail market, supported by the loyalty of its customer base, which trusts the added value of the H emblem.

Technical specifications and performance

The 2027 City shares the same characteristics as current generations, being offered with a single mechanical unit. It uses the 1.5 VVTI engine, which delivers 126 hp and 15.8 kgfm of torque. This engine is coupled with a CVT transmission, the same setup used in the sedan, hatchback, and WR-V and HR-V SUVs (in entry-level versions). This engine is suitable for consumers who are still hesitant about three-cylinder turbo engines or electrified units.

The City's performance is consistent, though not surprising. The power and torque provide good agility both in the city and on the highway. As it is a naturally aspirated engine, the peak torque occurs at higher RPMs, above 4,000 rpm. However, the gearbox quickly adjusts the ratios, immediately increasing the revs, resulting in agile acceleration and safe overtaking, despite lacking the thrust of a turbo engine.

The overall behavior of the City is characterized by being balanced and smooth, typical of any Honda vehicle, without jerks. The suspension has excellent calibration, remaining firm during curves while absorbing road imperfections.

Inmetro data indicates satisfactory fuel consumption: the City Sedan consumes 9.1 km/l in the city and 10.8 km/l on the highway using ethanol. With gasoline, the figures are 12.9 km/l in the city and 15.3 km/l on the highway.

Interior finish and technology

The equipment package varies from the LX to Touring versions, in addition to the RS, exclusive to the hatchback. All versions include digital climate control, electric steering, and a multimedia system with wireless connectivity for Android Auto and Apple CarPlay.

The Honda Sensing driver assistance system becomes standard starting from the EX version. In the top-of-the-line Touring and RS versions, the Low Speed Follow function is added, along with Adaptive Cruise Control (ACC), which maintains throttle control even at speeds below 32 km/h.

The interior finish of the City draws attention due to the quality of the materials. The more expensive versions feature leather-upholstered seats and panels, which increases the feeling of sophistication. However, the model could improve by having electric-adjustable seats, a feature that could be an additional attraction to encourage the consumer to invest over R$ 150 thousand in a compact, considering the various alternatives available.

In summary, the Honda City is an attractive automobile, offering a reliable engine without relying on turbines or complex electronic modules, efficient consumption, and a package of features expected of a modern and well-equipped car.

The City's weak point may be its exterior design. The Brazilian consumer, like much of the global public, shows a preference for SUVs, even if they are essentially the same structure with a modified body. The Honda customer itself reflects this trend: the WR-V, which shares the platform, engine, transmission, and equipment, starts at R$ 150 thousand but sold 27,145 units from January to September, surpassing the sales of the sedan (11,568) and the hatchback (10,005). For someone looking for a car at R$ 117,700, the City is a difficult option to beat.

While much of the automotive industry is reducing investments in internal combustion engines, Toyota has chosen to transform this technology into a new and significant source of revenue. The Japanese manufacturer intends to commercialize its engines and hybrid systems to other automakers, aiming to generate approximately R$ 9 billion annually from this venture by 2032, according to Automotive News.

This goal represents a threefold increase over the estimated revenue of R$ 3 billion that third-party supply should generate in 2026. The first deliveries of this new engine line are scheduled for 2027.

The new engine family consists of three alternatives, all with four cylinders: a 1.5 naturally aspirated model, a 1.5 turbo, and a 2.0 turbo, all of which have the capability to operate integrated with hybrid systems. The 1.5 engine will be used to replace the units currently installed in models such as the Yaris and Corolla. The 1.5 turbo offers power equivalent to an existing 2.5 naturally aspirated engine, and the 2.0 turbo promises to surpass the performance of the 2.4 turbo that equips large SUVs and trucks of the brand in the United States.

Developed already considering electrification, these engines present physical advantages, being 10% smaller in volume and height. This dimensional reduction allows for a lower hood height, which contributes positively to aerodynamics and gives designers greater flexibility.

According to Toyota itself, the adoption of the new 1.5 engine results in a 12% fuel economy saving in a sedan.

The first expected buyers are traditional partners of the company, including Mazda, Subaru, and Suzuki, in addition to Daihatsu, which is a Toyota subsidiary. These five brands together move about 16 million vehicles annually.

It is important to note that this partnership does not imply abandoning the internal projects of these automakers; for example, Mazda continues to develop the Skyactiv-Z engine and a hybrid system for the CX-5, while Subaru maintains its focus on boxer engines, characterized by opposed horizontal cylinders.

For Toyota, this strategy serves to distribute development costs across a larger number of units and make its engines more competitive against competition from China. In turn, the other manufacturers benefit by gaining access to innovative mechanics without having to bear the full cost of creating them from scratch. Additionally, Toyota has also developed the 4.0 V8 engine, but for now, it is not part of the sales plans for other brands.

The fiscal year 2027 proved to be very successful for Tata Motors in the second quarter, as the company achieved record sales figures. In this quarter, domestic sales of Tata Motors reached 196,674 units. This significantly exceeds last year's figure of 140,189 units in the same quarter, demonstrating a 40% year-on-year growth in the company's sales.

On the global market, the company exported 5,049 units. Compared to the previous fiscal year, when exports amounted to 4,208 units, total vehicle sales reached 201,723 units. Last year, the company sold only 144,397 units during this period.

Considering the entire fiscal year 2027, Tata Motors sold 376,840 vehicles in the first half of the year. Whereas in the first half of the previous fiscal year, 264,028 units were sold, which represents an increase of 42.7% year-on-year. Thus, the company sold 112,812 more units.

A significant share of sales comes from the second quarter, where 201,723 units were sold. Tata's portfolio includes many electric vehicles; in the second quarter of fiscal year 2027, 47,150 electric vehicles were sold, compared to 24,855 electric vehicles in the second quarter of fiscal year 2026.

In the last quarter, the share of electric vehicles in Tata Motors' total sales volume was 23%, and the share of Compressed Natural Gas (CNG) models was 28%. Combining these two categories, 51% of Tata Motors' vehicles were sold in electric or CNG variants.

September proved to be a particularly successful month for Tata Motors, when the company sold a total of 70,210 passenger cars in domestic and global markets. Last year, 60,907 units were sold during the same period. In September 2026, Tata Motors sold 68,810 units domestically and exported 1,400 units.

Among Tata Motors' products, the Tata Punch and Nexon are the most popular cars. In September, Tata Motors sold 15,384 electric vehicles.