Honda will shift the production of the Civic Hatchback Hybrid from Japan to the United States.
Honda plans to cease operations at its factory in Yorii, Saitama Prefecture, Japan, by June or July 2025, and move production to the Indiana Auto Plant in Greensburg, Indiana, U.S.A.
Currently, the Indiana plant manufactures the Civic Hatchback and CR-V, and after the transition, it will operate as a dedicated production base for the Civic Hybrid Hatchback.
Honda explained that this decision was not a response to the 25% tariff imposed on imported vehicles by the United States. However, the timing of the announcement coincides with the implementation of the tariff, leading to interpretations that it aims to avoid taxes.
The Civic, Honda’s flagship model in the U.S., recorded a 21% increase in sales last year compared to the previous year. The hybrid model has also strengthened its position in the North American market by receiving awards.
Currently, approximately 70% of the vehicles Honda sells in the United States are produced locally. The relocation of production aligns with this strategy.
The Indiana plant employs over 2,700 people and has surpassed 3 million units in cumulative production. In the future, Honda plans to move some of the Accord production from the Marysville Plant in Ohio to this location.
The transition is limited to the Hatchback Hybrid model. The Civic Hybrid Sedan produced in Alliston, Ontario, Canada, will maintain its existing production system.
Honda initially planned to manufacture the next-generation Civic at its Guanajuato plant in Mexico, but this plan was canceled in early 2025 due to changes in the trade environment being a major factor.
The market research firm S&P Global Mobility predicted that if the tariffs persist, automotive sales in the United States will decline by 700,000 units annually, and North American production will decrease by 1.28 million units.
By relocating production to the United States, Honda can secure price competitiveness and reduce policy conflicts with the U.S. government, which emphasizes job expansion.
