Honda mulls building new assembly plant in US to boost hybrid production

Honda Motor Co. is contemplating the construction of a new assembly plant in the United States to bolster hybrid vehicle production, as it refines its manufacturing and sales strategies in light of its revamped electric vehicle business. A Honda representative confirmed the company's consideration but noted that a final decision has not yet been made.

According to insiders, the Japanese automaker intends to make a final investment decision within the next few years, with operations slated to commence around 2030. The company is focusing on producing hybrid sport utility vehicles, which are experiencing high demand at the proposed facility. Honda now views reinforcing its hybrid lineup as a critical component of its strategy, with plans to introduce 15 new models, predominantly in North America, by fiscal 2029.

The investment decision will also hinge on the outcome of negotiations surrounding the United States-Mexico-Canada Agreement, or USMCA, a free trade accord that Washington seeks to revise. The car manufacturer has established a supply chain across North America, including Canada and Mexico, and may adjust its plan for a new U.S. plant contingent on the negotiation results.

U.S. President Donald Trump had earlier this week announced plans to raise tariffs on all automobiles and auto parts imported from Canada to 50 percent starting from January 1 of the following year. The move is perceived as an attempt to compel Canada to make concessions amid ongoing tit-for-tat tariffs between the two countries.