In an announcement made on Tuesday,
Honda revealed its
strategy to develop future electrified vehicles, motorcycles, and power equipment in tandem with its traditional internal combustion offerings. The goal is to close the gap with other key players in the automotive industry, such as
Tesla,
BYD, and
General Motors. These changes are scheduled to be implemented starting April
1.
It remains uncertain how this decision will impact Honda’s operations initially, especially considering its current focus on forming long-term partnerships with various businesses and automakers. Among these partnerships, Honda has joined forces with General Motors to produce cost-effective electric crossovers built on GM’s Ultium platform, anticipated to launch in 2027. Additionally, Honda has collaborated with Sony to establish a sub-brand, Afeela, aimed at creating a compact EV expected to debut around 2026.
As per the company’s statement, this shift signifies that electrification will be integrated into its research and development division from the outset; what was previously known as “Business Development Operations” has now been renamed as “Electrification Business Development Operations.” This encompasses automotive development,
BEV development, and the electrification of motorcycles and power products. Honda had previously announced its plans to overhaul nearly its entire motorcycle lineup by 2025, offering 10 electrified models equipped with solid-state batteries.
While some may view Honda’s announcement as merely a rebranding effort, underlying this move is a clear indication of a significant transformation for the company. In the past year, Honda faced substantial challenges in the U.S., experiencing a 33% decline in sales compared to the previous year. Given that Honda is a major player in engine manufacturing globally, it is particularly vulnerable to the swift adoption of electrification.
In response, Honda has announced plans to consolidate its global sales regions from six to three. This restructuring will involve distinct regions for North America and China, focusing on larger vehicle sales, and a unified region encompassing Japan, Asia, Europe, and other markets where smaller cars are prevalent.
Have a lead? Share it with us at tips@thedrive.com
