Honda Motor Co., Ltd. has announced plans to implement organizational changes aimed at enhancing the competitiveness of its motorcycle, automobile, and power products divisions. The changes, set to take effect on April 1, 2026, intend to align Honda's operations with the evolving global market and technology trends.
In 2020, Honda initiated a separation of its research and development functions to focus on production models and future technologies independently. This framework has yielded positive outcomes, effectively strengthening Honda's technological edge. However, with the rapid pace of change in the global business landscape, Honda seeks to consolidate its R&D functions under Honda R&D Co., Ltd., creating an integrated approach that spans from technology selection to market launch.
The upcoming organizational shift will involve the consolidation of the Automobile Development Operations and the SDV Business Development Unit into Honda R&D Co., Ltd. This move aims to enhance the company's ability to deliver innovative products to the market efficiently and responsively.
Additionally, Honda plans to restructure its automobile operations, forming new Business Strategy and Regional Business Units. The existing Automobile Business Strategy Unit and Sales Unit will be reorganized, while the SDV Business Development Unit will be dissolved. These changes are intended to improve product planning and sales capabilities while strengthening long-term product competitiveness.
The Motorcycle and Power Products divisions will also undergo reorganization as Honda advances its electrification strategy. Sales, business strategy, and product development functions for electrification and internal combustion engine (ICE) businesses will be integrated. This unified management approach aims to optimize resource allocation and support Honda's commitment to carbon neutrality and innovation.
Through these comprehensive organizational changes, Honda is positioning itself to strengthen its corporate transformation efforts, focusing on electrification and new value creation. The company aims to ensure its continued relevance and differentiation in an era increasingly dominated by electric and intelligent technologies.
