Honda is going to catch up in the rapidly expanding EV market with a new division and operations. The consolidated operations are going to accelerate EV deployment. Japanese automakers are falling behind in the electrification process as some are denying the EV as the future.
Starting in April, Honda will make key organizational and operational changes to further accelerate its electric mobility business while enhancing value for its shareholders. In a statement Tuesday, Honda said it will consolidate the development of vehicles, motorcycles, and other power products into a new business segment called its “Electrification Business Development Operations.” Working together as one on battery electric vehicle (BEV) product development rather than separately will help “strengthen and accelerate Honda’s electrification business.”
To further boost its strategy, Honda plans to reorganize its regional operations, consolidating them into three markets. The new structure will consist of three regional operations rather than six, including North America, China, and associate regions, which groups together Japan, Asia, and South America with the Europe, Africa, and Middle East markets. Honda ended the statement by saying it’s looking to “transform itself through electrification” and strives to become “even more recognized as a company society wants to exist in the electrified era.”
The Japanese automaker unveiled its first electric SUV in October, the Honda Prologue, which will be co-developed with GM. The Prologue is set to debut next year as the company works toward achieving carbon neutrality by 2050. Honda has yet to release its first EV in North America. The Prologue is slated for 2024 but will be based on GM’s technology. Honda has plans to sell EVs on its own e: Architecture platform, but again, we will have to wait until 2026.
Honda wants to be a significant player in the EV space and said it plans 30 electric models by 2030. Its goal is to produce 2 million electric vehicles annually by the decade’s end, but its late movement isn’t an advantage. Honda, along with Toyota, Nissan, and Mitsubishi, has all been slowly moving into electrification. Toyota’s CEO still doggedly insists that hydrogen and other fuel sources are just as important. The changes go into effect on April 1 and will handle electrification efforts across several Honda product lines, including vehicles, power products, and motorcycles. Six regional units will consolidate into three, which will help Honda become more nimble and faster in addressing issues. The automaker is focused on making affordable EVs as well.