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Honda Confirms Hybrid Civic Production Shift to Indiana Amid Tariff Pressures

The automaker denies reports of broader production moves from Canada and Mexico, focusing instead on a targeted relocation from Japan.

Honda employees work along the vehicle assembly line before an event announcing plans for a Honda electric vehicle battery plant in Alliston, Ont., on April 25, 2024.
The Honda logo is displayed, at the 46th Bangkok International Motor Show in Bangkok, Thailand, March 24, 2025. REUTERS/Chalinee Thirasupa/File Photo
A drone view shows Honda vehicles parked at the company's automotive assembly plant in Alliston, Ontario, Canada, April 1, 2025. REUTERS/Carlos Osorio

Overview

  • Honda has officially announced the relocation of its hybrid Civic production for the U.S. market from Japan to its Indiana plant, starting mid-2025.
  • The move is a response to the Trump administration’s 25% tariff on imported vehicles, which has disrupted global supply chains and production strategies.
  • Reports suggesting Honda might shift production from Canada and Mexico to the U.S. have been refuted by Honda Canada, Honda Mexico, and Canadian officials, who confirm no changes to current operations.
  • Honda is considering increasing U.S. production capacity by up to 30% over the next few years, potentially adding shifts and workers, though no formal decisions have been made.
  • Canadian officials, including Premier Doug Ford and Industry Minister Anita Anand, have reiterated Honda’s commitment to maintaining full capacity at its Ontario plant.