Daily Management Review

Reuters: Production of new Honda Civic has been shifted from Mexico to the U.S. due to duties


03/04/2025


Japan's Honda has chosen to manufacture its next-generation hybrid Civic in Indiana (US) instead of Mexico to evade potential tariffs on one of its most popular car models, three sources informed Reuters.



Mad African! via flickr
Mad African! via flickr
The new Honda Civic was set to start production in Mexico's Guanajuato in November 2027. The Mexican state was selected due to increasing expenses that complicated car production in the U.S. or Canada.

It has now been determined that the new Civic model will be manufactured in Indiana. Manufacturing is planned to commence in May 2028. It is anticipated that 210,000 Honda hybrid vehicles will be produced annually in the US. If the production capacity falls short of demand, the Honda Civic will be sourced from nations not impacted by the new tariffs, stated one of the agency's contacts.

A Honda representative chose not to provide comments on the adjustments to the Civic production strategy, noting that the company is considering demand and the market conditions for the purpose of "ideal production and distribution worldwide."

source: reuters.com