Honda to invest US$3 billion in new US plant, develop all-new V6 hybrid system

Honda has announced a US$3 billion (approximately RM 13.3 billion) investment in a new high-tech vehicle assembly plant in Ohio, US.

The project is part of Honda's wider strategy to increase production capacity in North America and meet growing demand for hybrid vehicles across the region.

Bob Nelson, Executive Vice President of American Honda Motor Co., Inc., speaks at the announcement of the new plant and investment.

Honda executives join government and community leaders to mark the announcement of the new US$3 billion US auto plant and investments across multiple facilities.

A new 240,000-unit plant in Ohio

The new facility will be built in central Ohio, between Honda's existing East Liberty and Marysville plants. Production is expected to begin in 2029. The project is set to create more than 2,000 local jobs.

The plant will have an annual production capacity of up to 240,000 vehicles. Once operational, Honda's total annual production capacity in the US is expected to reach around 1.3 million vehicles, while its capacity across North America will rise to approximately 1.9 million.

Designed around highly automated production lines, the facility will be able to adjust its output to changing market demand, with the flexibility to build hybrid, petrol and fully electric vehicles.

New V6 hybrid engine production planned

Honda is also preparing to overhaul its Alabama Auto Plant (AAP) as part of its new hybrid strategy.

The facility will receive new equipment and production upgrades to support the manufacture of an all-new V6 hybrid engine. The powertrain is intended for use in several mid-size and large vehicle models, including SUVs.

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Hybrid production capacity set for major expansion

The investment goes beyond the new Ohio assembly plant. Honda is also upgrading several key manufacturing facilities in the US and Canada to create a more integrated hybrid production network.

At the Anna Engine Plant (AEP) in Ohio, existing production lines are being reconfigured to build a next-generation four-cylinder Atkinson-cycle engine designed for compact and mid-size vehicles.

Meanwhile, Honda's transmission plants in Ohio and Georgia (TMP-O and TMP-G) are undergoing upgrades and expansions to increase hybrid powertrain production. As a result, Ohio's hybrid powertrain production capacity is expected to grow by 250% over the next few years.

Honda's facility in Ontario, Canada (HCM), will also receive investment to bring engine manufacturing back to the site, supporting production of next-generation hybrid and petrol vehicles.

Honda announced in May 2026 that it planned to launch 15 new hybrid models worldwide by 2030. The latest US$3 billion investment is a major step towards delivering on that plan.

Although the investment is focused on North America, where nearly 99% of Honda and Acura vehicles sold are manufactured locally, the technologies developed through these projects could eventually benefit other markets as well. These include the new V6 hybrid system and next-generation four-cylinder hybrid technology.

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