Honda to Relocate Mexico, Canada Production to Make 90% of US Sales Locally

Honda Plans to Increase US Vehicle Production by Up to 30%

Published Tue, Apr 15, 2025 · 05:59 PM

Automaker Aims to Produce 90% of Cars Sold in the US Locally

[TOKYO] Honda is considering shifting some car production from Mexico and Canada to the US, with the goal of producing 90% of cars sold in the country locally, in response to new US auto tariffs, according to the Nikkei newspaper.

Increased Production to Offset Tariffs

Japan’s second-biggest automaker by sales plans to increase US vehicle production by as much as 30% over two to three years in response to US President Donald Trump’s decision to impose a 25% levy on imported vehicles, Nikkei said.

Previous Reports Suggest Shift in Production

In the weeks leading up to the new US levy, Reuters had reported that Honda plans to manufacture its next-generation Civic hybrid in the US state of Indiana, instead of Mexico, to avoid potential tariffs.

Honda’s Biggest Market

The US was Honda’s biggest market last year, accounting for nearly 40% of global sales. The automaker sold 1.4 million vehicles in the US last year.

Conclusion

Honda’s plan to increase US vehicle production by up to 30% is a significant move to offset the impact of US auto tariffs. The company aims to produce 90% of cars sold in the US locally, a shift that could have a significant impact on the US auto industry.

FAQs

Q: Why is Honda increasing US vehicle production?

A: Honda is increasing US vehicle production to offset the impact of US auto tariffs, which could lead to higher costs for imported vehicles.

Q: How much is Honda increasing US vehicle production?

A: Honda plans to increase US vehicle production by as much as 30% over two to three years.

Q: Where will Honda produce its next-generation Civic hybrid?

A: Honda will produce its next-generation Civic hybrid in the US state of Indiana, instead of Mexico, to avoid potential tariffs.

Q: What percentage of cars sold in the US will be produced locally?

A: Honda aims to produce 90% of cars sold in the US locally.

Q: What is Honda’s biggest market?

A: The US is Honda’s biggest market, accounting for nearly 40% of global sales.