In 2024, Honda’s (HMC) American division sold a total of 1,423,857 vehicles, most of which were Honda-brand vehicles.
Below the popular CR-V crossover SUV, Honda’s second-highest bestseller is a nameplate that has lasted with the brand for more than five decades: the Civic. Of the 1,291,490 Honda cars sold last year, 242,005 were Civics, a 20% jump from the previous year.
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2025 Honda Civic Hatchback Sport Touring Hybrid. According to Reuters, Honda plans to build the next iteration of the Civic hybrid in Indiana due to tariff restrictions.
Honda
Honda shifts future production from Mexico to Indiana
According to a new report from Reuters, Honda will make its next-generation Civic hybrid in Indiana instead of Mexico to protect it from planned U.S. tariffs on imports.
Previously, President Trump threatened 25% tariffs on goods originating from Canada and Mexico—save for a 10% carveout for Canadian oil. On February 4, President Trump and the respective cross-border leaders reached agreements to pause the tariffs for one month after they presented him with initiatives to help curb the issues.
Citing three Honda insiders, the automaker planned to make the new one in Guanajuato, Mexico, beginning in November 2027 due to rising costs in Indiana and Canada.
Honda’s plant in Greensburg, Indiana, currently produces Civics and CR-Vs. In March 2023, Honda announced that it plans to move all production of the bigger Accord sedan from Marysville, Ohio, to the plant by 2025.
The sources who spoke to Reuters noted that Honda plans to produce 210,000 Civics yearly at the plant. However, they noted that they would import Civics from countries unaffected by tariffs to meet elevated demand.
Honda also has facilities in Georgia and Alabama. Its plant in the Peach State produces gearboxes, while the Alabama plant produces the brand’s bigger Passport and Pilot SUVs and the Ridgeline pickup and Odyssey minivan.
Separately, Honda is making investments in American production. It has committed $1 billion toward turning its Ohio facilities, including the Marysville Auto Plant, into an “EV hub.”
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Though leaders of automakers like Ford, Stellantis, and General Motors expressed their feelings and capabilities to adapt to Trump’s potential trade tariffs, Honda’s is the first concrete decision to come amidst the new Administration.
Shortly after the election, Honda’s Chief Operating Officer Shinji Aoyama warned that the automaker may consider shifting production if the U.S. implements permanent tariffs on imported vehicles.
Honda produces the compact Civic sedan and hatchback and the CR-V crossover SUV at its Alliston, Ontario plant in Canada, which supplements U.S. production of both models.
In Mexico alone, Honda makes roughly 200,000 vehicles and ships about 160,000 of them to the U.S., including the Prologue EV and the popular HR-V compact crossover SUV.
“The impact could be 160,000 units subject to a tariff,” Aoyama said. “That is a big impact.”
Related: Tariffs could make these popular cars more expensive
Aoyama said any tariffs implemented in the U.S. would not be implemented without significant lobbying and negotiation; however, he does have a plan if it becomes an actual problem.
“Maybe we would go for production elsewhere not subject to U.S. tariffs,” he said.
During Honda’s earnings call on February 13, Aoyama said that a 25% tariff would have a “$20 billion-plus impact” but noted that the company is prepared for the short term.
“So at this moment, what we can do is to do something in the short term, which is about current production based on the current model mix and production in Mexico and Canadian factories,” he said.
“We could reorganize the mix, product mix of the production as well there. This is something we can do short term. But in a mid-term perspective, we could change the allocation of the multiple mix in different ways. We are preparing for that, too.”
The Honda Motor Company is listed on the New York Stock Exchange under the ticker HMC.
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