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Honda to Set up New Division to Catch Up in the EV Race

Honda will prioritise electrification in cars, motorcycles and power generators to keep pace with rivals Tesla and China’s BYD, it has said


Honda will set up a new division on April 1 to prioritise electrification of its vehicles.
Honda will set up a new division on April 1 to prioritise electrification of its vehicles. File photo: Reuters.

 

Honda Motor Company will set up a new unit to propel its goals in the lucrative electric vehicle market, the Japanese automaker said on Tuesday.

The new division, to be launched on April 1, will prioritise electrification across a range of products, including cars, motorcycles and generators, Honda said in a statement.

The shake-up is part of the automaker’s bid to catch up in the fast-growing market for full electric vehicles, led by Tesla and China’s BYD.

Japanese automakers have been at risk of falling behind their European and US rivals in the EV market.

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To combine regional units

 

The Japanese automaker also said it would combine current six regional operations to three, composed 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 line-up strategy in line with the electrification acceleration,” a spokesperson said in a briefing.

The automaker anticipates its vehicle line-up in North America and China would be mid- to large size, whereas the line-up for other regions would be small- to mid-size in other areas, the spokesperson said.

 

  • Reuters, with additional editing from Alfie Habershon

 

 

Read more:

 

Tesla’s Mighty Profits Eat Into Asian Rivals in EV Price War

 

Volkswagen Says ‘Don’t Want to Give Up’ China EV Market

 

Sony, Honda Reveal Prototype of ‘Intelligent’ Afeela EV

 

 

Alfie Habershon

Alfie is a Reporter at Asia Financial. He previously lived in Mumbai reporting on India's economy and healthcare for data journalism initiative IndiaSpend, as well as having worked for London based Tortoise Media.

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