Honda Motor (HMC) has decided to manufacture its next generation of Civic hybrid vehicles in the US state of Indiana instead of Mexico to avoid possible tariffs, Reuters reported Monday, citing three people familiar with the matter.
Honda originally planned to produce the Civic in Guanajuato, Mexico beginning in November 2027 but now plans to begin production of 210,000 vehicles annually in Indiana in May 2028, according to the report.
Honda will seek to import vehicles from nations not struck by tariffs if the Indiana production falls short of demand, Reuters reported.
Honda did not immediately reply to MT Newswires' request for comment.
(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.)