The Honda manufacturing plant in Greensburg may be the site of new Honda Civic hybrid production following 25% tariffs on Mexican imports. Photo by Honda in America.

News Release

INDIANA — According to reports, Japanese car manufacturer Honda is responding to proposed tariffs on Mexico by moving next-generation Civic hybrid production to Indiana.

Original plans, according to a Reuters report released Monday, March 3, were to set production in Guanajuato, Mexico, but its 2027 production has now been pushed to 2028 in Indiana. The report says production will reach 210,000 units annually.

Reuter’s report did not specify the location of production, but Honda’s only Indiana facility is the Indiana Auto Plant in Greensburg.

Trump’s 25% tariffs on Mexico and Canada, the largest U.S. trade partners, are expected to begin Tuesday after a 30 day pause. The U.S. imported $69 billion in light trucks and cars and $78 billion in auto parts from Mexico in 2023, the most of any country. That same year, $37 billion in cars and light trucks were imported from Canada.

Indiana has been a first in U.S. Honda production in the past, with the Indiana Auto Plant being the country’s first to produce the Civic Hatchback in 2021. The Greensburg facility, about an hour southeast from Indianapolis, was also the company’s first U.S. plant to make the Acura ILX in 2012, Honda Insight in 2019 and CR-V Hybrid in 2020.

Indiana Auto Plant, which opened in 2008, employs 2,700 people in its 1.3 million-square-foot facility. Honda builds the Insight Hybrid, Civic Hatchback and CR-V there.

While Honda reported a 7% profit decrease for the last nine months of 2024, at the same time sales increased 9%. The company had been in negotiations to create a joint holding company with fellow Japanese carmakers Mitsubishi Motors Corp. and Nissan, but talks ended early this year.