Honda Motor announced it plans to increase production of cheaper internal combustion engine (ICE) vehicles in the US this year, reflecting expectations of tougher market conditions, as well as lower federal emissions standards and falling petrol retail prices in the country.
The Japanese automaker’s local subsidiary, American Honda, reported a slight increase in US sales to 1,430,600 units in 2025, its best year since 2021, which the company said was achieved “despite the impact of changes in market conditions and a microchip shortage that contributed to leaner inventories in the fourth quarter.”
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A significant proportion of Honda’s US sales were hybrid models, including 54% of deliveries of its best-selling CR-V model, while hybrid variants of the Accord, Civic and all-new Prelude sedans were also in demand last year, which are sold alongside the all-electric Prologue.
Honda confirmed it is “preparing for a more competitive market heading into 2026, with industry SAAR forecast to be in the high 15-million to low 16-million-unit range.” The company pointed to growing demand for lower-cost models, including ICE-powered sedans and SUVs, as US consumers rein in spending.
American Honda expects to sell 1.485 million vehicles in the US this year, a 4% increase compared with 2025, including 1.35 million Honda-branded models and 135,000 Acura-branded models.
The company’s head of sales, Lance Woelfer, said during the company’s annual briefing that “with average new car prices hitting record highs across the industry, cost is a growing concern, and we want the Honda and Acura brands to continue to be recognized for delivering incredible value to our customers. We are focused on delivering the right mix of gas-powered and hybrid vehicles to meet customer demand for affordable, high-value products. This means adjusting our production mix to include more lower-priced, gas-powered models.”
