Honda Motor Company recently announced its plans to shift production of the Civic Hybrid from Japan to the United States in response to the US government’s 25% increase in tariffs on imported vehicles. The move is expected to take place by July 2025, with production moving from the Saitama Prefecture plant in Japan to a facility in Indiana.
The decision to move production of the Civic Hybrid to the US comes as a response to the recent tariff hike and aims to mitigate its impact on Honda’s operations. The new-generation, five-door Civic hybrid model began production at the Saitama plant in February, but the company has now decided to accelerate its plans to produce the model in the US.
The Civic is a popular model for Honda in the US, with almost 59,000 units sold in the first quarter of 2025. Recognizing the high demand for the Civic in the US market, Honda deemed it appropriate to shift production to the US to better serve its customers.
In addition to Honda, other automakers like Nissan and Mitsubishi have also made similar decisions to shift production of certain models from Japan to the US in response to the new import duties imposed by the US government. This trend reflects the challenges that automakers are facing due to the changing tariff landscape and the need to adapt their production strategies accordingly.
While Tesla stands out as having 100% US-sourced sales in the US, analysts point out that the company may still be exposed to tariffs on imported components for its US manufacturing operations. The shifting tariff landscape is forcing automakers to rethink their production and supply chain strategies to navigate the challenges posed by the new trade policies.
Overall, Honda’s decision to move production of the Civic Hybrid to the US highlights the impact of changing trade policies on the automotive industry and underscores the need for automakers to adapt to the evolving tariff landscape. By shifting production to the US, Honda aims to better serve its customers in the US market and mitigate the impact of the recent tariff hike on its operations.
