The investment plan is to meet the rapid growth of car market in the region and global uncertainties such as currency fluctuations, the carmaker said.
The plan includes construction of new production lines and expansion of existing facilities in Brazil and Mexico, it said.
As a result, Nissan's production capacity in the region will be increased to 2 million units a year in 2014.
The investment plan will also create more than 10,000 jobs, the carmaker said.
Nissan has retained its position as the top auto seller in Mexico for the past four years. Its market share in the Central American country is expected to rise as construction of its $2 billion production facilities in Aguascalientes, 580km northwest of Mexico City, nears completion.
In Brazil, construction of Nissan's $1.5 billion production complex in Resende is underway. The plant, the automaker's first production lines in South America, is scheduled to begin operation in the first half of 2014. It is capable of producing up to 200,000 V-Platform vehicles per year.
reporter
Park Sae-jin
swatchsjp@ajunews.com