Honda may produce the new Civic in Indiana instead of Mexico owing to Trump tariffs

According to three people familiar with the subject, Honda has decided to produce its next-generation Civic hybrid in Indiana rather than Mexico in order to avoid future tariffs on one of its best-selling car models.

The shift demonstrates how manufacturers are having to respond to US President Donald Trump’s proposed 25% tariffs on Mexican and Canadian imports. While other automakers expressed concern about the taxes, Honda’s decision marks the first real action by a major Japanese automaker.

According to three sources, the second-largest automaker in Japan initially planned to produce the next generation of the Civic in Guanajuato, Mexico. According to one source, the production start date was set for November 2027.

Mexico was chosen because rising costs made car production difficult in Indiana and Canada.

It now intends to build the new Civic model in Indiana beginning in May 2028, with an annual output of around 210,000 cars. If production in Indiana falls short of demand, Honda will attempt to import from regions unaffected by tariffs.

A Honda representative declined to comment on modifications to the Civic production plan, saying the company would continue to analyze demand and the business environment while determining «optimal production and allocation globally.»