Business Desk 
Apr 18, 2025
Honda announced that it will relocate the manufacturing of its best-selling Civic Hybrid from Japan to the US by June or July 2025.
The Honda Civic Hybrid, which is famous for its efficiency and environmental-friendly technology, is one of the best-selling hybrid cars in the US.
Why did Honda move Civic Hybrid production to the US?
Though Honda officially did not mention US tariffs specifically as the rationale, experts suggest that raising taxation on imported autos, particularly Japanese imports, must have played some role. Tariffs on cars have made the cost of bringing autos into the US higher for international automobile makers.
A Honda official stated, "We make cars where the demand is." What this implies is that the company would like to manufacture cars near the customers purchasing them. Demand for hybrid vehicles is growing rapidly in America, and Honda would like to respond to that demand quickly and at an affordable price.
By producing the Civic Hybrid in America, Honda avoids the cost of high imports, maintains competitive car prices, and is able to get cars to dealerships sooner. The move will also improve its supply chain, as well as promote local jobs within the automobile sector.
Other international automakers have also shifted production to America in recent times because of shifting trade policies. Experts say Honda's shift is a shrewd method of remaining robust in an increasing hybrid market and not suffering losses from international trade tensions.
