Honda has decided to produce its next-generation Civic hybrid in the U.S. state of Indiana, instead of Mexico, to avoid potential tariffs on one of its top-selling car models, according to three people familiar with the matter.

The president may have been referencing earlier reports that the Japanese automaker was planning to move some production from Mexico to Indiana in response to impending tariffs.

Honda will reportedly move production of its next Civic hybrid car to Indiana due to possible tariffs against Mexico. That's according to Reuters which cited people familiar with the matter. The carmaker had been set to produce the cars in Mexico.

Honda is looking to move their new Honda Civic Hybrid production to Greensburg, Indiana from Guanajuato, Mexico, Reuters reports. Honda’s Indiana auto plant opened in 2008, producing the Civic and CRV,

Honda is set to produce its next-generation Civic hybrid in Indiana instead of Mexico. According to a report from Reuters, this comes ahead of the tariffs against Canada and Mexico set to go into effect on Tuesday.

Honda might move the production of the next-generation Civic to its facility in Greensburg, Indiana, following Trump administration's tariffs proposal

Officials reportedly met with Ford, General Motors and Stellantis NV executives on Tuesday to discuss the impact of the tariffs and possible relief measures.

Honda will not be building its next-generation Civic hybrid in Mexico as originally planned due to tariffs threatened by U.S. President Trump.

Honda’s flexible manufacturing capabilities are moving into its next generation as well. Though the automaker is prepping for EV production, the remodeling and retooling underway at its Marysville and East Liberty auto plants and the Anna Engine Plant will allow it to build gas, hybrid and electric vehicles all on the same lines.

According to a new report from Reuters, Indiana could see an increase in auto production in the future. The news agency reports that Honda has decided to produce its newest Civic Hybrid in the Hoosier state. Reuters says the company is shifting production from Mexico to avoid potential tariffs.