Honda is exploring plans to shift some of its vehicle production from Mexico and Canada to the United States in response to newly imposed U.S. auto tariffs, according to a report by Nikkei on Tuesday.
The automaker aims to have 90% of the cars it sells in the U.S. produced domestically. This move comes after President Donald Trump introduced a 25% tariff on imported vehicles, prompting automakers to reconsider their supply chains.
Honda is reportedly targeting a 30% increase in its U.S. production over the next two to three years.
Ahead of the tariff rollout, Honda had already decided to manufacture its next-generation Civic hybrid in Indiana rather than in Mexico. The U.S. remains Honda’s largest market, accounting for about 40% of global sales.
Last year, the company sold 1.4 million vehicles in the U.S., with roughly 40% of those imported from Mexico or Canada.
To localize more production, Honda plans to shift assembly of the CR-V SUV from Canada and the HR-V SUV from Mexico to U.S. facilities. To support the ramp-up, the company is considering increasing its U.S. workforce, moving to a three-shift schedule, and adding weekend shifts to boost output, Nikkei reported.
