Honda to invest US$3 billion in new US plant, boosting HEV production capacity

Honda announced on 9 November (local time) that it will invest US$3 billion (approximately HK$23.4 billion) in a new automotive plant in central Ohio.

The investment also covers strategic upgrades at several production facilities across Ohio, Alabama and Georgia, as Honda looks to expand US production of hybrid vehicles, engines and hybrid systems.

New plant set to open in 2029

The new plant will be built on land between Honda's existing East Liberty and Marysville facilities. It will be the automaker's fourth vehicle plant in Ohio and its ninth automotive production facility in the US.

The site is planned to have an annual production capacity of 240,000 vehicles, with operations scheduled to begin in 2029, subject to final government approval.

The plant will be designed to build different vehicle types and powertrains, including hybrids, petrol models and fully electric vehicles.

Honda says it will be among the most advanced plants in the global manufacturing network when it opens, using advanced automation, data-driven technology and flexible production systems.

Once the new facility is operational, Honda's annual vehicle production capacity in the US is expected to reach around 1.3 million units. Its total capacity across North America will rise to approximately 1.9 million vehicles.

New V6 hybrid engine

A key part of the investment will go towards expanding engine production at Honda's Alabama Auto Plant. The facility will add capacity to prepare for production of a new V6 hybrid engine.

Honda will also upgrade infrastructure on Line 1 so it can build the Passport, which is currently produced only on Line 2. This will give the plant greater flexibility in allocating production across its model range. The Alabama facility celebrates 25 years of vehicle production this autumn.

Ohio hybrid system capacity to rise 250%

Honda's transmission plant in Ohio (TMP-O) has begun converting an existing transmission production line into a second hybrid system production line. The changes are expected to increase the state's hybrid system production capacity by 250% over the coming years.

TMP-O currently supplies two-motor hybrid systems for the US-built CR-V, Accord and Civic. It is also preparing to produce Honda's next-generation hybrid system, which is due to enter production next year.

The plant is also planning to manufacture hybrid systems for larger vehicles and will serve as the lead facility for their development and production.

In Georgia, Honda's TMP-G plant is expected to begin producing next-generation hybrid systems for larger vehicles in the coming years. This will require a new transmission assembly line.

New four-cylinder Atkinson-cycle engine

Honda's Anna Engine Plant in Ohio, the world's largest Honda engine factory, is modifying existing production lines to build a next-generation four-cylinder Atkinson-cycle engine. The engine will be used in future compact and mid-size vehicles manufactured in North America.

The plant is also expanding its parts integration centre, which is expected to begin operating next year.

Honda's Alliston plant in Canada will also receive production facility upgrades to support the next generation of hybrid and petrol models. The plans include bringing engine manufacturing back to the site.

Honda has previously announced plans to launch 15 new Honda and Acura hybrid models globally by 2030, with North America expected to be a key market for most of them. The latest investment will support that strategy. According to the automaker, nearly 99% of Honda and Acura vehicles sold in the US in 2025 were built in North America.

The US$3 billion investment sends a clear signal about Honda's priorities: hybrids will take centre stage in its North American strategy. The new plant will retain the flexibility to build fully electric vehicles, but Honda has specifically cited growing demand for hybrids in the region as a key reason for the expansion.

Source: Honda global press release and Honda US newsroom.

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