Cost Considerations Prevent Honda from Producing Hybrids in Mexico

Jorge Saldaña
Cost Considerations Prevent Honda from Producing Hybrids in Mexico

Despite sharing the same platform, Honda has chosen to electrify the CR-V and the Accord, but not the HR-V or the Acura ADX, and the reason lies in the segments those models are aimed at.

This was revealed by Gary Robinson, Honda’s head of product planning for North America, in an interview with AutoNews during Monterey Auto Week in California, where he explained that there are no technical obstacles to producing hybrid versions of the vehicles manufactured in the Bajío region.

However, the Japanese automaker prioritizes cost in the entry-level crossover segment because potential consumers in that niche are very conscious of every dollar they spend.

“It’s a segment where cost is a major factor, so there’s always a certain challenge, especially for Honda,” Robinson said.

Sales of the Honda HR-V in the United States fell by nearly 14% in the first half of the year, totaling over 68,000 units, while sales of the ADX reached 16,554 SUVs.

Nevertheless, dealer inventories remain limited, reflecting strong demand for the gasoline-powered versions.

This has allowed Honda to focus hybrid versions on models with higher sales volume or those that generate higher margins, ensuring the technology delivers maximum value.

That is why the main brand views internal combustion engines as an important means of maintaining competitive prices, especially in the entry-level segments, although in the case of the Acura ADX, it is possible that the hybrid version will arrive sooner.

Honda will introduce 15 next-generation hybrid models worldwide by March 2030, primarily in North America.

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