Core Viewpoint - Honda Motor Co., Ltd. has denied reports about relocating vehicle production from Canada and Mexico to the United States in response to potential tariffs, asserting that no changes are currently being considered for its Mexican operations [1][2]. Group 1: Production Strategy - Honda aims to manufacture 90% of vehicles sold in the United States domestically and plans to increase its U.S. production capacity by nearly 30% over the next two to three years [2]. - Honda Canada stated that while it regularly assesses future production strategies, it remains confident in managing market challenges without any immediate changes [3]. Group 2: Market Performance - The United States is Honda's most critical market, with approximately 1.4 million vehicles sold in 2024, accounting for nearly 40% of its global sales, and about 40% of those vehicles are imported from Canada and Mexico [4]. - In the first quarter of the current year, Honda's U.S. sales increased by 5% to nearly 352,000 units [4]. Group 3: Industry Context - Nissan Motor Co., Ltd. plans to reduce Japanese production of its top-selling U.S. model, the Rogue SUV, while reviewing its manufacturing strategies to enhance efficiency [5]. - Recent comments from President Trump indicated a potential delay in new auto tariffs, allowing automakers more time to adapt, with General Motors and Nissan announcing plans to increase U.S. production [6]. - Nissan has decided to maintain two shifts at its Smyrna, TN, plant to strengthen its U.S. manufacturing presence amid rising tariffs on imported vehicles [7]. - Hyundai has opened a new electric vehicle plant in Ellabell, GA, with plans to produce 500,000 EVs annually and invest $21 billion in U.S. operations by 2028 [8].

Core Viewpoint - Honda is planning to significantly expand its manufacturing operations in the US in response to new auto tariffs imposed by the Trump administration, aiming for 90% of its US sales to be produced domestically [1][4]. Group 1: Manufacturing Expansion - Honda intends to increase its US production capacity by up to 30% over the next two to three years [2]. - The company plans to shift production of key models, including the CR-V SUV from Canada and the HR-V SUV from Mexico to US facilities [6]. - Honda is also set to manufacture the next-generation Civic hybrid in Indiana instead of Mexico [6]. Group 2: Market Importance - The US market is crucial for Honda, accounting for approximately 40% of its global sales, with around 1.4 million vehicles sold in the US last year [5]. - In the first quarter of this year, Honda's US sales increased by 5% to nearly 352,000 vehicles [5]. Group 3: Industry Response - Honda's strategy reflects a broader trend among automakers to adjust production plans due to the 25% tariff on imported vehicles, with other companies like General Motors and Nissan also ramping up US production [4][7]. - The reshuffling of production is part of a larger reshoring trend in the US manufacturing sector, driven by rising costs and supply chain concerns [14][15].