Honda has a special plan to shift into top gear in the EV race

Honda outlined organizational changes under three structures – the creation of an electrification business development business, the reorganization of regional businesses and the reorganization of corporate functions. The first of these three is perhaps the most critical. According to Honda, this business will integrate the business strategy and BEV product development functions of the automotive business and the electrification-related strategy and development functions of the motorcycle and power products business.

The existing six regional operations will also be streamlined into three regional operations – North America, China and related regions. The associated regions will combine four regional businesses – Japan, Asia and Oceania – including India, South America and Europe.

Previously, the company had announced plans to build three EV-specific platforms in partnership with General Motors by 2030. It also plans to build and sell millions of electric vehicles by the end of the decade. Currently, Honda does offer a plug-in hybrid model and its all-electric compact car, the Honda-e, in select markets. But the race is really on in the fast-moving auto market, where traditional manufacturers are stepping out of their comfort zones to take advantage of the expected global shift to electric vehicles. Tesla is far ahead, but Hyundai, Kia, Mercedes, Audi, GM, Ford, Toyota, and even several local Chinese players are out and about to make demands.

China is the world’s largest auto market and the largest electric vehicle market, followed by the United States and some European countries.

First published date: Jan 24, 2023 at 14:22pm CST