Honda unveils $3B Ohio hybrid auto plant plan

Honda will invest $3 billion to build a new auto plant on land between its Marysville and East Liberty facilities in central Ohio, adding capacity to produce 240,000 vehicles a year. Production at the plant is expected to begin in 2029, pending final government approvals. The facility is designed with flexibility to build hybrid and gasoline-powered vehicles as well as battery-electric models, enabling output to shift as customer demand and electrification trends evolve.

The new plant will be Honda’s fourth auto plant in Ohio and its ninth auto-related production facility in the U.S. When it comes online, Honda’s U.S. auto production capacity is expected to rise to approximately 1.3 million vehicles a year, with North American capacity reaching about 1.9 million vehicles annually. Honda describes the Ohio facility as one of its most advanced plants, with leading-edge automation, data-driven technologies and flexible production systems.

The all-new plant will create more than 2,000 new American jobs in central Ohio. Including parallel investments at the Anna Engine Plant and Honda Transmission Plant-Ohio, Honda’s latest commitment in the state totals 2,390 new jobs and $3.38 billion in new investment. The project has received approval for a tax credit from the Ohio Tax Credit Authority, and Honda also plans to pursue additional assistance through JobsOhio, with details to be disclosed after final agreements are executed.

Honda selected Ohio for the new facility based on factors such as a highly skilled workforce, proximity to a large concentration of its U.S. supply base and nearby vehicle development operations. Existing manufacturing for vehicles, engines and hybrid systems in the state, along with the L-H Battery Company joint venture that can produce cells for hybrid and all-electric vehicles, also supported the decision. Honda executives describe the package as one of the most significant commitments in the company’s history and a reinforcement of its strategy to build products close to customers.

Beyond the new assembly plant, Honda is retooling the Anna Engine Plant in Ohio to produce a next-generation four-cylinder Atkinson-cycle engine for future compact and midsize vehicles built in North America. Anna will also gain an expanded on-site parts consolidation center, expected to begin operation next year, to improve logistics efficiency and support future production growth. These moves are intended to align engine capacity with future hybrid and gasoline vehicle output from the new Ohio plant.

Honda Transmission Plant-Ohio in Russells Point is being reconfigured to support two next-generation hybrid systems, one for compact and midsize models and another for larger vehicles. Transforming an existing transmission line into a second hybrid-system line will increase hybrid system production capacity in Ohio by 250 percent in the coming years. The Ohio transmission facility will serve as the lead plant for the larger hybrid system, while a plant in Georgia will add an assembly line for hybrid systems for larger vehicles.

Honda positions the Ohio expansion as part of a broader North American manufacturing strategy involving facilities in Ohio, Alabama, Georgia and Canada. These investments are intended to boost production of hybrid-electric vehicles and the engines and hybrid systems that power them, supporting multiple new models under development at Honda’s U.S. R&D operations. Honda plans to introduce 15 new Honda and Acura hybrid models globally by 2030, with North America expected to be a primary market for many of these vehicles.

Honda has stated that its first models using the next-generation hybrid system are scheduled to arrive from 2027, with Acura to follow within two years and larger D-segment hybrids in North America from 2029. The company has indicated that the new Ohio plant and associated projects will help it remain able to adapt as electrification trends evolve, while not expecting the investments to materially affect consolidated results for the fiscal year ending March 31, 2027.