Honda announced that it will “further accelerate” its electrification push by creating a new division in April 2023. It also announced organizational changes to how it runs its business on a global scale.
The Japanese automaker revealed that it will create a new Electrification Business Development Operations division to consolidate its electric vehicle development in the automotive, motorcycle, and powersports departments. By doing that, Honda says it will speed up the development of electric vehicles.
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Honda said that the division will build on the Business Development Operations, which was first announced in April 2022. At that time, the automaker announced that it was planning on building 30 EVs around the world by 2030.
Honda will invest ¥5 trillion yen (approx $38 billion USD) in its new division. The result of that investment includes two vehicles co-developed with GM for the North American market that are coming in 2024, as well as 10 new EVs for China by 2027. The automaker is also planning on developing a dedicated platform for electric vehicles called e:Architecture that will start rolling out in 2026. Honda said it was targeting annual EV production volumes of 2 million vehicles per year by 2030.
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Furthermore, Honda announced that it will be consolidating its global regional operations, and will now have just three regions: the first one includes North America, second China, and Associated Regions, and the third combines Japan, Asia & Oceania, South America, and Europe, as well as Africa and the Middle East Region. Its electrification strategies will be executed based on these areas, with each region receiving its own vehicles.
Finally, the automaker said it will create Corporate Strategy Operation and Corporate Administration Operation Divisions. The former will be tasked with formulating, executing, and communicating its corporate strategies, while the latter will have to pursue the optimization of corporate resources. Honda said it is taking these steps to “transform itself through electrification and new value creation” into a “company society wants to exist” in the electric era.
A 3d animation professional with over 20 years of industry experience having served in leading organizations & production facilities of Pakistan, an avid car enthusiast and petrolhead with an affection to deliver writings to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com