Japan’s Koito Americas Expansion: 60% Growth in Mexico, 70% in Brazil by 2026

Koito Manufacturing, a leading Japanese automotive lighting equipment manufacturer, has announced significant expansion plans for its operations in Mexico and Brazil.

The company will invest 33 billion yen ($234 million) by fiscal 2026 to boost production capacity in these countries. This strategic move aims to meet the growing demand from Japanese and U.S. automakers in the region.

In Mexico, Koito will construct a new plant scheduled to begin operations in April 2026. This expansion will increase the company’s annual production capacity for headlights and rear combination lights by approximately 60%.

The total output will reach 4.8 million units. The new facility will be located adjacent to the current plant in San Luis Potosí City.

Simultaneously, Koito plans to enlarge its existing facility in Brazil. The expansion, expected to be completed by August 2025, will boost the annual production capacity by about 70%.

This will bring the total capacity to 1.7 million units. The Brazilian plant is located in Sorocaba, State of São Paulo.

These expansions come in response to the projected growth in the automotive industry in Latin America. Koito anticipates its revenue to double in Brazil by fiscal 2026 and in Mexico by fiscal 2028, compared to fiscal 2023 levels.

In addition, the company aims to capitalize on the increasing demand driven by population growth and economic expansion in the region.

Koito’s Strategic Investment

Koito’s investment aligns with its recently announced 1st Medium-Term Management Plan for the fiscal years 2025 to 2027.

The plan focuses on building a strong revenue base, expanding sales and production systems, and investing in growth. By fiscal 2027, Koito targets net sales of 1 trillion yen or more and an operating profit margin of 8%.

Expect significant growth in the automotive lighting market in the coming years. Industry analysts project the market to reach $40 billion by 2024, with a compound annual growth rate of over 5% from 2018 to 2024.

This growth is driven by advancements in lighting technologies, increasing demand for energy-efficient solutions, and the rising focus on vehicle safety and aesthetics.

Koito’s expansion in the Americas positions the company to capitalize on these market trends. The investment will enhance Koito‘s global production network, which includes operations in North America, China, Europe, and Asia.

As the largest Tier-1 automotive exterior lighting supplier in North America, Koito’s subsidiary serves major automakers such as Toyota, Honda, Nissan, Ford, Subaru, and General Motors.

However, this expansion strategy demonstrates Koito’s commitment to strengthening its market position and meeting the evolving needs of the automotive industry.

By boosting manufacturing and expanding production, Koito aims to lead in automotive lighting technology. This investment will also support the growth of its global customer base.