Honda Motor Corporation announced on Tuesday that it will establish a new division to improve and accelerate the electrification of its car lineup as part of an organizational restructuring.
The restructuring is part of the automaker’s effort to catch up to Tesla Inc. and China’s BYD Co. in electric vehicle (EV) development. Honda, like other Japanese automakers, has been lagging behind European and American competitors in the EV industry.
An official statement highlights that the new division, which will become functional on April 1, will streamline the Japanese automaker’s electrification strategy as well as the development of cars, motorcycles, and power goods like generators.
According to the spokesperson, Honda predicts that its EV lineup in North America and China will be mid to large-size, while for other markets, it will be small to mid-size.
Partnership With a Battery Maker
The company has also partnered with battery maker GS Yuasa Corporation. Both companies plan to establish a joint venture by the end of this year.
The partners stated that they will collaborate on the lithium-ion battery production process, and R&D, and will develop a supply chain for essential raw materials.