Honda reshapes global operations to sharpen EV and tech focus

Honda is overhauling its global organisational structure in a bid to strengthen competitiveness across its motorcycle, automobile and power products businesses as electrification accelerates.

The Japanese manufacturer says the changes, effective April 1, 2026, are designed to improve profitability and respond more quickly to shifting market and technology trends.

Honda says the global business environment is changing “faster than expected” and the company needs to strengthen its ability to “deliver the original technologies and new value of Honda to the market at the optimal timing”.

R&D consolidation

A key move will see the consolidation of automobile research and development functions under Honda R&D Co., Ltd., the company’s dedicated R&D subsidiary.

R&D responsibilities currently split between the Automobile Development Operations and the SDV (software-defined vehicle) Business Development Unit will be transferred to Honda R&D.

Honda says the goal is to create a structure where the entire process “from the selection of technology themes through product market launches” is managed as an integrated flow.

Through the change, Honda R&D will be advanced “as a R&D organization capable of continuing to create compelling products,” the company says.

Automobile business restructured

Honda will also reorganise its Automobile Operations to improve profitability.

The current Automobile Business Strategy Unit and Sales Unit will be restructured into a new Business Strategy Unit and Regional Business Unit. Functions of the SDV Business Development Unit will be absorbed into the new structure and the SDV unit will be disbanded.

Honda says the changes are aimed at enhancing product planning and sales capabilities in line with market dynamics and customer needs, while strengthening competitiveness from a mid- to long-term perspective.

Motorcycle and power products integration

The Motorcycle and Power Products Operations will also be reshaped as Honda moves from electrification strategy planning into execution.

Sales, business strategy and product development functions for electrified and internal combustion engine (ICE) products will be integrated.

Honda says integrated management of electrified and ICE businesses will enable optimal allocation of resources while continuing initiatives toward carbon neutrality and “the continuous creation of increasingly competitive products”.

The company says the changes will accelerate its corporate transformation through electrification and new value creation, with the aim of establishing a more distinctive presence “as ‘a company society wants to exist’ even in the era of electrification and intelligent technologies.”