As part of the review of its organizational structure, Honda will establish a new division to strengthen and speed up its electrification business.
The conversion is part of the automaker’s efforts to catch up with the burgeoning all-electric vehicle market led by Tesla and China’s BYD.
Japanese automakers are at risk of falling behind their Western rivals in the EV market.
With the change from April 1, the new division will integrate Honda’s electrification strategy with the development of power products such as cars, motorcycles and generators, the company said.
The automaker also said it will consolidate its six regional businesses, comprising North America, China and Japan, the rest of Asia and related regions including Europe, into three.
Integrating into the three was to “rapidly develop the implementation of resource shifts in line with our future lineup strategy in line with accelerating electrification,” a spokesperson said in a briefing.
The automaker expects its vehicle lineup to be medium to large in North America and China, and small to medium in the rest of the world, the spokesperson said.
Honda and Japanese electronics giant Sony plan to produce the jointly developed EV at Honda plants in North America, with deliveries scheduled to begin in 2026.
Last year, Honda set out a goal of having 30 EV models globally by 2030 and producing about 2 million EVs annually.