Market Chatter: Honda Shifts Next-Gen Civic Production to Indiana to Avoid Tariffs

MT Newswires Live

Mar 04, 2025

Honda Motor Co (TYO:7267) plans to manufacture its next-generation Civic hybrid in Indiana instead of Mexico to dodge potential US tariffs, Reuters reported Tuesday, citing three people familiar with the matter.

The move is seen as a response to proposed 25% tariffs on Mexican and Canadian goods, prompting manufacturers to adapt, according to the report.

Originally, production was to begin in Mexico in November 2027, but is now slated to start in Indiana in May 2028, the report added.

If Indiana's production doesn't meet demand, Honda may import from countries not affected by tariffs, Reuters added.

Honda did not immediately respond to MT Newswire's queries on the matter.

Honda's shares shed more than 2% recently in Tokyo trading.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Price (JPY): $1383.00, Change: $-30, Percent Change: -2.09%

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