Honda Motor is reportedly nearing the final stages of talks to construct a hybrid vehicle factory in the US, at an estimated cost of between $1.8bn and $2.5bn.
Citing unnamed sources, Nikkei Asia reported that the automaker is weighing Ohio as the preferred location for the facility.
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Pending completion of negotiations with state authorities, construction could begin as early as 2027, with production slated to start in 2030.
The site would sit near Honda’s existing Ohio operations.
Once operational, the plant would become Honda’s eighth final assembly facility across the US, Canada and Mexico, marking its first new North American plant in roughly two decades.
It is expected to have an annual production capacity of 250,000 units, pushing Honda’s overall North American output up by around 10% to beyond two million vehicles annually.
The factory would focus on large hybrid models, including SUVs exceeding five metres in length, as Honda looks to strengthen its position against rivals Toyota and Hyundai in the large-hybrid segment.
The company has also raised its 2030 hybrid sales target to 2.5 million units, 2.7 times its 2025 figure, while targeting operating profit of at least Y1.4tn ($8.85bn) for the fiscal year ending March 2029.
North America represents 40% of Honda’s total sales, with the company forecasting 1.7 million vehicle sales for the fiscal year ending March 2027, a 6% year-on-year (YoY) increase.
Regional production climbed 6% YoY to 430,000 units in the April-to-June quarter, its strongest second-quarter performance since 2019.
Honda noted it would evaluate hybrid demand sustainability and policy-related risks before committing to further production investment and was also exploring making the new plant’s lines EV-compatible to allow flexible output.
The proposed investment follows Honda’s decision in March to abandon development and sales plans for three electric vehicles intended for the North American market, including two models from its “0 series” EV range.
