Mitsubishi has always maintained a more discreet presence compared with other car makers in Brazil. The factory inaugurated 25 years ago in Catalão, in the state of Goiás, has followed a quiet routine all this time. Mitsubishi, represented by the local group HPE, only made noise in rally races and other competitions, which helped carve out a unique identity for the Japanese brand in the country.
However, with the recently announced R$4 billion investment plan, the operation is set to gain more prominence. Firstly, part of the funds will be used to develop and produce ethanol hybrid vehicles, a decision already made by more aggressive competitors.
Additionally, the operation will gain significance with its debut in the external market. Later this year, the Catalão factory will begin exporting vehicles to neighboring South American markets, currently served by Mitsubishi Japan.
Brazilian engineer Mauro Correia, who has been CEO of HPE for just over a year, highlights the importance of exports. Unlike most competitors, HPE is not a subsidiary. “We are representatives of the Mitsubishi brand in Brazil,” he said. “Brazil has the potential to export, but it needs more efficient ports.”
Mr. Correia recently visited Japan to negotiate the agreement that resulted in the investment, which begins this year and extends until 2032. The entirety of the funds is from the Brazilian group, and HPE committed to investing with the guarantee of having larger volumes of Mitsubishi cars in Brazil, either through imports or the agreement to produce in Goiás.
The Japanese company has transferred the responsibility for exporting to South American markets to the Brazilian group, with the perspective that the Catalão operation will be competitive.
These decisions were influenced by the recent extension of federal tax incentives until 2032 for automotive companies located in the Northeast and Central-West regions.
“Without the incentives, [producing in Goiás] would be more expensive than importing from Argentina,” said Mr. Correia, referring, without naming names, to two heavyweight competitors with pickup truck factories in Argentina: Ford and Toyota. “The incentives allow us to plan, and with the right product, the time has come to export,” he added.
According to the executive, by 2032, the company will strive to reduce logistical costs arising from the distance separating Catalão from the Southeast and South, where parts manufacturers and most consumers are concentrated. São Paulo, for example, is some 700 kilometers away.
In Catalão, two models are produced—the L200 pickup and the Eclipse SUV. The new investment plan includes producing another model by the end of the year and another in the first half of 2025. Mr. Correia does not reveal details but said that one of them will be a hybrid that can run on ethanol.
Since the use of ethanol is linked to Brazilian expertise, HPE has strengthened its engineering team and intensified the exchange of professionals with Japan.
However, there are no plans to create new manufacturing jobs for now. Today, the Goiás factory has 2,000 direct employees, and according to Mr. Correia, 12,000 indirect employees live in Catalão, a city of 120,000 inhabitants, and its surroundings.
If the sales expansion plans succeed, the production line, which currently operates in a single shift, will likely be expanded. In 2023, Mitsubishi sold 21,000 vehicles in Brazil, including imports. According to the executive, the goal is to reach 23,000 this year, 30,000 in two years, and over 40,000 later.
Mr. Correia, an executive with four decades of experience in the industry, has worked at companies such as Ford and Volkswagen and had left the leadership of the Brazilian group CAOA when he was invited to take over as CEO of HPE.
Passionate about vehicle competitions since his youth, upon accepting the invitation, he combined business with pleasure. Organizing sports events and outings with Mitsubishi vehicle owners and their families is constant, functioning as a marketing tool and helping to ensure customer loyalty to the brand.
The organization of rally races, which gather up to 800 people in a single competition, has existed since the brand was established in Brazil 30 years ago. It soon became a local peculiarity, admired even by the Japanese.
The initiative came from Eduardo Souza Ramos, the majority partner of HPE, a discreet businessperson, and a regular participant in both land and sea competitions.
Annually, HPE holds two rallies open to any brand customer with a 4x4 vehicle, a professional competition, and outings that include meetings of CEOs from various companies. In 2025, the brand will also return to the Stock Car competition.
HPE, however, is not only targeting adventure enthusiasts brought by automotive competitions. Recently, the company began approaching the agribusiness sector, a potential market for its pickups.
Mr. Correia has been traveling frequently and estimates that this rapprochement has already involved 70 farmers and cattle ranchers. “We have even changed the types of financial services, which now allow payment at the time of the first harvest,” he said.
HPE also represents Suzuki and produced vehicles of the brand in Catalão until 2020. Since then, it has only sold imported vehicles from Japan. Now, talks with the automaker’s headquarters have resumed. According to Mr. Correia, it is still too early to talk about. “Nothing is for sure yet.”
Translation: Carlos Dias
