The investment would make the facility the biggest plant in the region for the 2023 CR-V Hybrid crossover and includes equal grants of C$131.6 million from the governments of Canada and Ontario, Honda of Canada Mfg said on Wednesday.
The move comes at a time when automakers globally have sharpened their focus on producing environmentally friendly vehicles in response to rising demand.
The investment would also help the Japanese automaker meet its goal of raising the ratio of electric vehicles and fuel cell vehicles to 100% of all sales by 2040.
Having started production in 1986, Honda of Canada Mfg has the capacity to produce more than 400,000 vehicles and 190,000 engines annually.
($1 = 1.2701 Canadian dollars)