Honda to increase hybrid vehicle production in US

The automaker will also expand procurement of U.S.-made vehicle parts, including batteries for hybrid vehicles.

Honda's assembly plant in Greensburg, Indiana, shown to the media Friday, makes the hybrid and gasoline versions of its popular CR-V SUV and flagship Civic. Its annual production capacity is 250,000 units.

"We'll focus on expanding production of hybrid vehicles, for which demand is expected to increase further in North America," plant manager Daisuke Shimizu said.

The Indiana plant is aiming to start procuring US-made batteries by year-end.

Honda has a higher proportion of locally manufactured vehicles in the United States than other Japanese automakers, reaching about 60 %.

Honda also plans to produce some Civic models currently exported from Japan to the United States at the Indiana plant from September, in light of US President Donald Trump's tariff policy.

As for EVs, Honda will start production at its plant in Ohio at year-end as planned, while delaying the start of the operations of a new plant in Canada for about two years.

The company regards hybrid vehicles as a revenue source to support its transition to EVs.

[Copyright The Jiji Press, Ltd.]