The upcoming Honda Civic will not be manufactured in Mexico to circumvent tariffs | Carscoops

      The next generation of the compact model will continue to be produced in Indiana, but the timeline has been delayed.

      Reportedly, Honda has abandoned its plans to relocate Civic Hybrid production to Mexico.

      Instead, production will take place in Indiana, although some imports may still be required.

      Initially set for late 2027, production has now been postponed to 2028.

      President Trump is expected to impose a 25% tariff on products from Canada and Mexico starting March 4, prompting automakers to brace for an upcoming global trade war. This initiative emphasizes manufacturing vehicles in the United States to help keep consumer prices manageable.

      This is especially crucial for mainstream models, and Reuters has reported that Honda has chosen to produce the next-generation Civic Hybrid in the United States. The model was initially planned for production in Mexico, marking a shift since the current sedan is produced in Alliston, Ontario, while the hatchback is made in Greensburg, Indiana.

      More: Trump's Tariffs Could Impact 20% of New Car Sales in the US

      According to three sources familiar with the situation, Civic production was supposed to begin in Guanajuato, Mexico, in November 2027. This move was anticipated to help Honda mitigate rising costs in the United States and Canada.

      However, the looming tariffs have disrupted those plans, causing the production of the Civic to be pushed back to May 2028, now to be manufactured in Indiana. Honda aims to produce approximately 210,000 units annually at the plant, which poses a challenge as the company sold 242,005 Civics in the United States last year. To address the expected deficit, Honda may consider importing Civics manufactured in countries not subject to tariffs.

      Honda has not confirmed or denied this report, but Reuters mentioned that about 40% of vehicles sold by Honda in America are imported from Canada or Mexico, indicating a significant issue for the company, which may lead to noticeably higher prices for consumers.