Honda has decided change plans and move production from Civic next iteration hybrid From Mexico to Indiana, USA. The decision is in response to the 25% tariffs that President Donald Trump has confirmed he will impose on imported products from Mexico and Canada.
The Civic hybrid, known as Civic e:HEV in Europe and Civic Hybrid in North America, It is currently manufactured at the Celaya, Guanajuato plant., where Honda has been assembling some of its best-selling models for years. However, the new tariffs have led the Japanese company to rethink its production strategy. For more information on this model, you can consult the Civic hybrid unveiled in the US
Honda, a strong player in the US market…
In 2024, Honda sold around 1.4 million vehicles in the US, including models from its premium brand Acura. Within this volume, More than 240.000 units were of the Civic, which consolidates it as the brand's second best-selling model, only behind the CR-V.
The Civic is known for its affordability and reliability, which has driven a 21% increase in its year-over-year sales in the U.S. This sales growth reflects Honda's strong position in a highly competitive market.
Meanwhile, Honda exports around 60 US-made vehicles shipped to Mexico and CanadaIf those countries impose retaliatory tariffs, the company could face increased operating costs, forcing it to rethink its business strategies.
Honda's decision demonstrates how production strategies can be drastically affected by changes in trade policyTensions between the US and Mexico have forced the Japanese automaker to strengthen its presence in the United States, even if it comes at additional costs. This move could mark the beginning of a new era for the Civic and other models from the brand.
Mexico, a key player in automobile production…
Mexico has historically been a key center for vehicle production from many companies, including Honda, thanks to its low costs and proximity to the US market. Honda's plant in Celaya has played a key role in this regard.
At present, Nearly 80% of the vehicles assembled by Honda in Mexico are destined for the U.S., making any change in trade between the two countries significantly impactful. This highlights the company's dependence on its production in Mexico.
In addition, approximately 40% of the cars Honda sells in the U.S. are imported from Mexico and Canada., which makes the company especially exposed to these tariffs. The current situation is putting pressure on the automaker to consider new market strategies.
An unexpected change in production…
Honda had planned manufacture the new-generation Civic hybrid in Mexico starting in November 2027, thanks to low operating costs compared to the US and Canada. However, several sources have indicated that, due to tariffs, Honda will choose to start production in Indiana in May 2028., with an estimated capacity of 210 thousand units per year.
This production capacity is in line with the company's plans to strengthen its offering in the local market. If demand also exceeds the capacity of the US plant, Honda could resort to importing from other countries that are not subject to these tariffs., anonymous sources assured.
Impact of tariffs on the automotive industry…
The automotive industry is feeling the effects of trade uncertainty. Honda is not the only one affected, as Other brands may be forced to reconsider their production plans if the tariffs are eventually implemented.
Honda's chief operating officer, Shinji Aoyama, already warned last November that the company would have to rethink its strategy If tariffs on imported vehicles were to become permanent, this situation could also affect consumer perceptions of its vehicle lineup, including the Civic.
Honda's change of plans is evidence How manufacturers are adjusting their production strategies to minimize costs and remain competitive in the U.S. market. These types of adjustments are not new in the industry, where adaptability is crucial.
Source - Reuters
Images | Sling
More information about this model
- Plazas 5
- Power 184 - 329 hp
- Consumption 4,7 - 8,2l/100km
- Assessment 4,6