Honda Mulls Building New Hybrid Vehicle Plant in U.S.

New York, Aug. 25 (Jiji Press)–Honda Motor Co. is considering building a new automobile plant in the United States to expand its hybrid vehicle lineup, aiming to start its operations by around 2030, company officials said Tuesday. The planned new facility may produce large hybrid vehicles, such as an SUV model. Meanwhile, the officials did not disclose candidate sites for the new plant and the size of investment. The major Japanese automaker is shifting its focus to hybrid vehicles from electric vehicles, whose demand is declining in North America. It plans to launch 15 hybrid vehicle models globally by fiscal 2029. In the United States, hybrids are popular amid rising fuel prices. Sales of “Honda” brand new hybrid vehicles in the U.S. market hit a record high in the first half of 2026. The company’s vehicle production in North America is nearing its capacity, leading the firm to consider building a new plant for hybrid vehicles. Still, the course of the North American automobile market is increasingly uncertain over a review of the USMCA, a free trade agreement among the United States, Canada and Mexico. Japanese automakers that have built their supply chains across the three countries are calling for the pact to be maintained. Depending on the outcome of the review, however, Honda may need to adjust its strategy, industry sources said. END [Copyright The Jiji Press, Ltd.]