Honda is overhauling business operations to accelerate EV adoption


Honda is revamping its business to drive growth and catch up in the fast-growing EV market. The automaker said Tuesday it would create a new division and consolidate operations to accelerate the deployment of electric vehicles.

Honda is gearing its business towards the introduction of electric vehicles

Japanese automakers are quickly falling behind as the industry transitions to all-electric vehicles. Although some continue to deny that electric vehicles are the future (when I look at you, Toyota), Honda wants to join the revolution.

Beginning in April, Honda will make key organizational and operational changes to further accelerate its electric mobility business while increasing value for its shareholders.

In an explanation On Tuesday, Honda said it would consolidate the development of vehicles, motorcycles and other powertrain products into a new business segment called “Electrification Business Development Operations.”

Collaborating on product development for battery electric vehicles (BEV) rather than separately will help “strengthen and accelerate Honda’s electrification business.”

To further strengthen its strategy, Honda plans to reorganize its regional operations and consolidate them into three markets. The new structure will consist of three regional operations instead of six, including North America, China and associated regions, combining Japan, Asia and South America with markets in Europe, Africa and the Middle East.

Honda ended the statement by saying it wants to “transform through electrification” and strives to “become even more recognized as a corporate society wants to survive in the electrified age.”

The Japanese automaker presented its first electric SUV in October the Honda Prologue, which is being developed jointly with GM. The prologue is slated for release next year as the company works towards achieving carbon neutrality by 2050.

Honda EV shop
2024 Honda Prologue (Source: Honda)

Electrek’s take

It’s good to see Honda realigning its business to focus on electric products and accelerating the adoption of electric vehicles. It will help streamline development and production in the long term.

However, it may not be too late at this point. Many automakers are already achieving double-digit (or 100%) EV sales, with production capacity expanding rapidly.

Meanwhile, Honda has yet to release its first electric vehicle in North America. The Prologue is planned for 2024 but will be based on GM’s technology. Honda plans to sell electric vehicles on its own e:Architecture platform, but again, we’ll have to wait until 2026.

Hopefully, the new business structure can help spur Honda’s growth. In order for them to become a company that society wants to survive in the EV age, we need to see some zero-emission products first.

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