[Stay on top of transportation news: Get TTNews in your inbox.]
Honda to spend $3B on new hybrid vehicle plant in Ohio
Plant is expected to start production in 2029
(Honda in America via X)
Key Takeaways:
- Honda announced a $3 billion central Ohio factory that will produce next-generation hybrids and add 240,000 vehicles of annual capacity.
- The investment follows Honda’s pivot from all-electric vehicles as hybrids account for about a third of its U.S. sales.
- The plant is expected to start production in 2029 as Honda targets 15 new hybrid models globally by March 2030.
Honda Motor Co. plans to build a $3 billion factory in central Ohio to manufacture its next-generation hybrids, boosting its output capacity for the popular vehicles.
The Japanese automaker announced the new plant on Nov. 9, which is expected to start production in 2029 and expand output by 240,000 vehicles a year. Honda has been mulling over the decision for months as part of a strategic pivot earlier this year away from all-electric vehicles. It aims to introduce 15 new hybrids globally by March 2030, primarily targeting North America.
“These investments strengthen America’s role as a cornerstone of Honda’s global future,” Bob Nelson, executive vice president of the company’s U.S. business operations, said in a statement.
Honda’s U.S. sales have risen 5% in the first 10 months of the year, powered by strong demand for hybrid versions of its best-selling CR-V compact SUV, Accord midsized sedan and compact Civic sedan. Fuel-efficient hybrids, which make up about a third of the company’s total sales volume in the U.S., have caught on with cost-conscious buyers as gas prices have soared.
Honda is preparing to introduce a new system that will provide hybrid options for its larger, V6 engine-powered vehicles such as the Pilot SUV and upscale Acura MDX SUV.
Honda is investing in our next 50 years in America. Today, we announced plans to establish a new $3 billion auto plant in Ohio, creating more than 2,000 jobs and expanding our U.S. auto production capacity to almost 1.3 million vehicles a year using domestic and globally made parts. The facility is part of a broader investment in Honda manufacturing operations in Ohio, Alabama and Georgia that will expand and strengthen an integrated U.S. production network to boost the production of hybrid-electric vehicles, engines, and hybrid systems. This investment will establish the foundation for our next generation of manufacturing and support new Honda and Acura models being developed right here in the U.S.
— Honda in America (@HondaInAmerica) November 9, 2026
The new facility will be located between two existing auto assembly plants it operates in Ohio. It will be tooled to build gas-only, hybrid and fully electric vehicles, but the company didn’t provide a powertrain mix breakdown by production volume. It also said it will make unspecified investments in a numer of other facilities in North America.
Honda also has vehicle assembly operations in Alabama and Indiana as well as in Ontario, Canada and in central Mexico. In addition, it makes key parts such as engines and transmissions in Alabama, Georgia and Ohio.
U.S. trade relations with Canada and Mexico have been complicated by President Donald Trump’s tariffs on imports and his decision in July not to renew a North America free trade accord negotiated during his first administration. Earlier this week, Trump threatened to impose 50% levies on vehicles and auto parts made in Canada as of Jan. 1.
Honda was prepared to spend C$15 billion ($11 billion) on an EV battery supply chain complex in Canada, but put that plan on indefinite hold in May. It also canceled a trio of battery-electric models that it was preparing to manufacture in the U.S. But it began production this summer of electric vehicle battery cells at a $4.4 billion joint venture with LG Energy Solution in Ohio.
