The plant will be Honda’s sixth vehicle assembly facility in the United States and is expected to begin production in 2029. It will have an annual capacity of 240,000 units, mainly hybrid SUVs.

Located near the existing East Liberty plant, the new site is expected to create more than 2,000 new jobs. It will raise North America production capacity to 1.91 million units from 1.67 million. Bob Nelson, executive vice president at American Honda Motor Co., said the plant will be one of Honda’s most advanced in the world and will be built for flexibility, able to produce hybrids, gasoline‑powered and battery electric vehicles.

Demand for electric vehicles in the United States has fallen sharply since the autumn of 2025, when the administration of President Donald Trump terminated tax credits for them. Meanwhile, high fuel prices have boosted hybrid vehicle demand, prompting Honda to focus on hybrids and to plan the launch of 15 hybrid models globally by fiscal 2029.

Honda’s $3 billion Ohio plant is a direct response to rising hybrid demand and the loss of EV tax incentives. The investment secures jobs and expands North American capacity for the next decade.