Honda fans should prepare to start the engine. The Japanese manufacturing giant will produce the next generation of citizen hybrids in Indiana, the US, not Mexico, and produce side step tariffs on one of its top-selling automotive models.
Reuters reporter Maki Shiraki Quote Three people familiar with Mexico's problems were first selected. This is because rising costs make it difficult to produce cars in Indiana and Canada.
The outlet has continued to be changed now since President Donald Trump returned to the White House and set out to protect American employment and American workers.
The change highlights how manufacturers are in a hurry to adapt to US President Trump, who proposed a 25% tariff on goods from Mexico and Canada. While several automakers have expressed concern about taxation, Honda's move is the first concrete measure by major Japanese auto companies.
Japan's second-largest automaker was first planning to build the next-generation Civic in Guanajuato, Mexico, according to the three. According to one of the people, production was scheduled to begin in November 2027.
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Currently, the company plans to build a new civic model in Indiana starting in May 2028, with approximately 210,000 people expected to produce annually, one person said. Honda would try to import from a country that is not subject to tariffs if production in Indiana is low, one of them said.
A Honda spokesman declined to comment on changes to its citizen production plans when Reuters approached, adding that the company will continue to take into account demand and the business environment while considering “optimal production and allocation worldwide.”
The outlet also notes that Honda sold around 1.4 million cars and trucks in the US last year, including Acura models.
The manufacturer sold over 240,000 citizens in both petrol and gasoline-electric hybrid models, making it the second best seller in the US market after the CR-V.
U.S. sales for citizens, known for their affordable prices, rose 21% year-on-year last year, company data shows. Approximately 40% of vehicles sold in the US are imported from Mexico and Canada.
