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Tariffs looming, 210,000 Honda Civic hybrids to be made annually in Indiana

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  • Honda is producing its next-generation Civic hybrid in Indiana, instead of Mexico as originally planned, to avoid President Donald Trump’s expected tariffs on one of its top-selling cars. The change was revealed in a report by Reuters on Monday, which cited three people familiar with the matter.
  • The move comes as automakers prepare for the president’s 25% tariffs on goods from Mexico and Canada, set to take effect on Tuesday.
  • Honda, Japan’s second-largest vehicle manufacturer, initially planned to produce its new Civic in Mexico, starting in November 2027.

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Honda is producing its next-generation Civic hybrid in Indiana, instead of Mexico as initially planned, to avoid President Donald Trump’s expected tariffs on one of its top-selling cars.

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The change was revealed in a report by Reuters on Monday, March 3, which cited three people familiar with the matter.

The move comes as automakers prepare for the president’s 25% tariffs on goods from Mexico and Canada, set to take effect on Tuesday, March 4.

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What changed?

Honda, Japan’s second-largest vehicle maker, initially planned to produce its new Civic in Mexico, starting in November 2027.

A source tells Reuters that Honda picked Mexico because rising costs made it difficult to manufacture the car in Indiana or Canada.

How many vehicles will be produced?

Now, the source says that the automaker will build the new Civic in Indiana in May 2028, with roughly 210,000 cars produced annually.

The company would reportedly import vehicles from countries unaffected by tariffs if production in Indiana falls short of demand.

Honda has yet to officially announce its plans, and all sources spoke to Reuters anonymously.

Why do automakers choose Mexico?

Mexico has long served as a lower-cost option for global automakers, and Honda reportedly sends the vast majority of its Mexican output to the United States.

How many vehicles are exported to the U.S. from Mexico?

The company said it sold around 1.4 million vehicles in the United States in 2024, and roughly 40% of them were imported from Mexico and Canada.

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[KARAH RUCKER]

HONDA IS PRODUCING ITS NEXT-GENERATION CIVIC HYBRID IN INDIANA, INSTEAD OF MEXICO, TO AVOID PRESIDENT DONALD TRUMP’S EXPECTED TARIFFS ON ONE OF ITS TOP-SELLING CARS.

THE CHANGE REVEALED BY REUTERS, WHICH CITED THREE PEOPLE FAMILIAR WITH THE MATTER.

THE MOVE COMES AS AUTOMAKERS PREPARE FOR THE PRESIDENT’S 25 PERCENT TARIFFS ON GOODS FROM MEXICO AND CANADA, SET TO TAKE EFFECT TUESDAY.

HONDA, JAPAN’S SECOND-LARGEST VEHICLE MANUFACTURER, INITIALLY PLANNED TO PRODUCE ITS NEW CIVIC IN MEXICO AND STARTING IN NOVEMBER OF 2027. 

A SOURCE TELLS REUTERS, HONDA PICKED MEXICO BECAUSE RISING COSTS MADE IT DIFFICULT TO MANUFACTURE THE CAR IN INDIANA AND CANADA.

NOW, THE SOURCE SAYS, THE AUTOMAKER WILL BUILD THE NEW CIVIC IN INDIANA IN MAY OF 2028 WITH ROUGHLY 210-THOUSAND CARS PRODUCED ANNUALLY.

THE COMPANY WOULD REPORTEDLY IMPORT VEHICLES FROM COUNTRIES UNAFFECTED BY TARIFFS, IF PRODUCTION IN INDIANA FALLS SHORT OF DEMAND.

HONDA HAS YET TO OFFICIALLY ANNOUNCE ITS PLANS AND ALL SOURCES SPOKE TO REUTERS ANONYMOUSLY.

MEXICO HAS LONG-SERVED AS A LOWER COST OPTION FOR GLOBAL AUTOMAKERS AND HONDA REPORTEDLY SENDS THE VAST MAJORITY OF ITS MEXICAN OUTPUT TO THE U-S.

THE COMPANY SAID IT SOLD AROUND ONE-POINT-FOUR MILLION VEHICLES IN THE U-S LAST YEAR AND ROUGHLY 40 PERCENT OF THEM WERE IMPORTED FROM MEXICO AND CANADA.

FOR MORE ON THIS STORY– DOWNLOAD THE STRAIGHT ARROW NEWS APP OR VISIT SAN DOT COM.

FOR STRAIGHT ARROW NEWS– I’M KARAH RUCKER.