Honda said Tuesday it will build a new US assembly plant for hybrid vehicles in Ohio, aiming to start production in 2029 and spending about $3 billion ($470 billion) on the factory and upgrades to existing North American sites.
The plant will be able to produce 240,000 vehicles a year. Honda will also make it capable of building EVs, leaving room for electric demand to grow.
The decision sharpens Honda's shift away from an EV-first strategy. The company is making hybrids — which combine a gasoline engine with an electric motor — a pillar of its business as demand for them rises.
A market that carries Honda
North America accounts for more than 40% of Honda's global sales. The company already runs seven assembly plants in the US, Canada and Mexico, including sites for low-volume production.
Those plants built about 1.52 million vehicles in 2025, gasoline models included. Demand for fuel-efficient hybrids has climbed as fuel prices rose, leaving existing factories running near full capacity.
That strain pushed Honda to approve an eighth plant. The new factory will rise in Ohio, where the company already has manufacturing operations.