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Honda Shifts Civic Hybrid Production to Indiana Over U.S. Tariff Concerns

The automaker reportedly moves manufacturing from Mexico to the U.S. to avoid proposed 25% tariffs on imports from Mexico and Canada.

DETROIT, MICHIGAN - JANUARY 10: The Honda Civic Hybrid is announced as the winner of the Car of the Year award at the North American Car, Truck, and Utility Vehicle of the Year Awards at the 2025 Detroit Auto Show at Huntington Place on January 10, 2025 in Detroit, Michigan. The Detroit Auto Show opens to the public on January 11th and runs through January 20th .(Photo by Bill Pugliano/Getty Images)
A Honda Civic Hybrid is seen on display after winning the 2025 North American Car of the year award during media day at the 2025 Detroit Auto Show at Huntington Place in Detroit, Michigan, U.S. January 10, 2025. REUTERS/Rebecca Cook/File Photo
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Overview

  • Honda plans to produce its next-generation Civic hybrid in Indiana starting May 2028, replacing its initial plan to manufacture in Mexico.
  • The decision comes in response to proposed U.S. tariffs of up to 25% on goods imported from Mexico and Canada, which are expected to be announced this week.
  • Mexico was originally chosen for production due to lower costs, but the tariff threat has prompted Honda to shift its strategy to avoid financial impact.
  • The Civic is Honda's second-best-selling model in the U.S., with over 240,000 units sold last year, making this production change significant for the company.
  • Retaliatory tariffs from Canada and Mexico could further affect Honda, as 40% of its U.S. vehicle sales are currently imported from those countries.