Honda plans new hybrid vehicle factory in Ohio
Honda is reportedly preparing to build a new factory dedicated to hybrid vehicle production in Ohio as it looks to expand its manufacturing capacity in North America.
The Japanese carmaker could invest between 300 billion and 400 billion yen, equivalent to around $1.9 billion to $2.5 billion, in the new facility, according to the Nikkei business daily.
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Honda is said to be in the final stages of preparations for the project, with production expected to begin in 2030 if negotiations with Ohio state authorities are completed.
The planned investment comes as demand for hybrid vehicles continues to grow, with consumers increasingly turning to the technology amid higher fuel prices and the cost of fully electric vehicles.
According to the report, the new factory would also form part of Honda’s plans to increase its North American production capacity by around 10%.
The company is aiming to produce more than two million vehicles annually in the region to meet growing demand.