Honda Motors revealed intentions to develop an electric vehicle (EV) branch in order to compete with other EV titans such as China’s BYD and the United States’ Tesla. Honda’s electrification goal will be combined with the development of cars, motorcycles, and energy items such as generators under the new business, which is expected to begin on April 1.
Honda aims to reorganise its present six regional operations into three: North America, China and adjacent territories including Japan, and an operation that encompasses the rest of Asia and Europe, in order to catch up with rivals that have been pursuing EVs many years. The consolidation of these three locations will enable Honda to “rapidly develop the execution of resource shifts in accordance with the future lineup plan in line with the electrification acceleration,” according to a spokeswoman.
Honda’s 2022 plan calls for the worldwide manufacture of 30 EV models, with the objective of selling two million EVs per year by 2030. Honda and Sony (HNDAF) launched their EV, the Afeela, at the Consumer Electronics Show in Las Vegas in January. The Afeela, developed by Sony Honda Mobility, a joint venture established last year, intends to provide intuitive navigation through augmented reality using its sensor technologies.
Honda is not new to the EV industry, having produced its first EV, the Fit EV-Plus, in 1997. In addition, in 2012, the business made an electric version of the Honda Fit hatchback, the space-age-inspired MC- in 2014, and the Clarity Electric in 2016. However, Honda has lost market share in recent years as customers have preferred EVs or hybrids.
Honda sold 222,049 vehicles in the United States during the September quarter, a 36% decrease from the previous year, as supply chain issues caused by a shortage of semiconductor chips contributed to decreased output. According to Cox Automotive research, Honda’s overall market share will be 6.5% in 2022, down from more than 10% in 2021.
Honda’s shift toward electric cars is critical for the carmaker to catch up with rivals and fulfil the rising demand for electric vehicles. Honda will have the resources and structure to swiftly develop and execute its electrification plan with the formation of the EV division and the unification of regional operations. Honda is positioned itself to dominate the EV industry with the introduction of the Afeela and plans for 30 EV cars by 2022.