Honda Eyes New North American Factory as Chinese Sales Slip

Honda is quietly exploring plans to build another production plant in North America, signaling a major bet on the region’s long-term demand. CEO Toshihiro Mibe revealed the automaker is “considering” an eighth assembly facility for the continent in an interview with Japanese newspaper Yomiuri Shimbun.

The move comes as Honda’s historically strongest market continues to require more vehicles, while its business in China faces headwinds.

, Canada, and Mexico. North America has long been the company’s biggest sales region by volume, and Mibe’s comments suggest executives believe that demand will remain robust enough to justify the multi-billion-dollar investment. Industry analysts note that building closer to customers also helps Honda sidestep supply chain disruptions and tariff uncertainties.

Behind the shift is a stark reality in China: domestic automakers are eating into the market share of Japanese brands. Chinese car buyers are increasingly choosing homegrown EVs and hybrids over foreign nameplates, forcing Honda to rethink its global production footprint. By doubling down on North America, Honda is positioning itself to capture growth where it still has a strong foothold, rather than chasing a shrinking slice of the Chinese pie.

The company has not yet set a timeline or location for the possible new plant.