The Japanese automaker on Tuesday announced it was making the investment to "support its early-2017 production startup" of the popular CR-V.
The action will "meet strong and growing demand for its light-truck models," Honda said.
The CR-V competes in one of the hottest vehicle segments in the U.S. It was the top-selling compact crossover in the U.S. in 2015.
Honda said it is adding 100 new jobs in Indiana to support the launch of CR-V production next year.
The Indiana plant will continue to produce the Honda Civic sedan.
This gives the facility "both the top retail-selling compact car in America and the outright best-selling SUV," Honda said.
Edmunds says: This major investment will make it easier for car shoppers to get their hands on the American-made Civic and CR-V.