Honda Motor Co announced the creation of a new division as part of an organizational overhaul aimed at strengthening and accelerating its electrification business. The move is part of the automaker’s efforts to catch up in the rapidly growing market for full electric vehicles, which is currently led by Tesla Inc and China’s BYD. Japanese automakers have been at risk of falling behind their European and American rivals in the EV market.
Effective April 1, the new division will consolidate Honda’s electrification strategy and the development of automobiles, motorcycles, and power products such as generators. Additionally, the company will combine its current six regional operations into three, comprising of North America, China, and associated regions including Japan, the rest of Asia, and Europe.
Integrating to the three was to “rapidly develop the implementation of resource shifts in accordance with the future lineup strategy in line with the electrification acceleration,” a spokesperson said in a briefing.
Honda anticipates that its vehicle lineup in North America and China will consist of mid- to large-size vehicles, while the lineup in the rest of the region will consist of small- to mid-size vehicles.
The automaker announced last year that it aims to roll out 30 EV models globally and produce approximately 2 million EVs annually by 2030.
