Quick Takeaways
- Honda Automobile Business Reorganization integrates Honda R&D to accelerate SDV strategy and improve product competitiveness.
- The restructuring targets stronger regional sales execution and long-term automobile profitability.
On February 10, Honda Motor Co., Ltd. announced a major step under its Honda Automobile Business Reorganization plan to reinforce its automobile operations and regain competitive strength. The company revealed that its automobile development division will be merged with Honda R&D Co., Ltd., separating development functions from the head office structure. This move is aimed at accelerating innovation, enhancing product competitiveness, and aligning development capabilities with the rapidly evolving demands of software defined vehicles.
The restructuring comes at a critical time as Honda works to address sluggish sales performance and profitability challenges in its automobile business. By integrating core development and R&D functions, the company seeks to create more distinctive and competitive products for global markets.
As part of the Honda Automobile Business Reorganization, Honda’s Automobile Development Operations along with the SDV Business Development and R&D functions under its Automobile Operations will be transferred to Honda R&D. The structural shift will take effect on April 1, marking a significant operational transition within the group.
The transfer of development resources reflects Honda’s strategic response to the rise of software defined vehicles. As digital architecture, connectivity, and over-the-air capabilities reshape customer expectations, automakers must adapt their development ecosystems. By consolidating SDV-related business development and R&D under one entity, Honda aims to improve agility, shorten development cycles, and strengthen its SDV strategy across future mass production vehicles.
Beyond development integration, Honda will reorganize its automobile business department by establishing new Business Strategy and Regional Business units. This move is designed to reinforce regional sales capabilities while sharpening medium- to long-term product planning.
The company intends to address profitability challenges that have become a major concern in recent periods. Key objectives of this restructuring include:
By placing product competitiveness at the center of the Honda Automobile Business Reorganization, Honda aims to deliver vehicles that meet changing consumer expectations while restoring sustainable profitability. The integration of Honda R&D and the renewed focus on SDV-driven innovation signal a decisive effort to reposition the company in an increasingly software-centric automotive landscape.
The restructuring comes at a critical time as Honda works to address sluggish sales performance and profitability challenges in its automobile business. By integrating core development and R&D functions, the company seeks to create more distinctive and competitive products for global markets.
Honda Automobile Business Reorganization to Strengthen Development Capabilities
As part of the Honda Automobile Business Reorganization, Honda’s Automobile Development Operations along with the SDV Business Development and R&D functions under its Automobile Operations will be transferred to Honda R&D. The structural shift will take effect on April 1, marking a significant operational transition within the group.
Integration of Development and SDV Functions
The transfer of development resources reflects Honda’s strategic response to the rise of software defined vehicles. As digital architecture, connectivity, and over-the-air capabilities reshape customer expectations, automakers must adapt their development ecosystems. By consolidating SDV-related business development and R&D under one entity, Honda aims to improve agility, shorten development cycles, and strengthen its SDV strategy across future mass production vehicles.
Reorganization to Improve Automobile Profitability
Beyond development integration, Honda will reorganize its automobile business department by establishing new Business Strategy and Regional Business units. This move is designed to reinforce regional sales capabilities while sharpening medium- to long-term product planning.
Focus on Regional Sales and Product Strategy
The company intends to address profitability challenges that have become a major concern in recent periods. Key objectives of this restructuring include:
- Strengthening product competitiveness in core segments
- Enhancing regional market responsiveness
- Aligning global development with local customer expectations
- Accelerating competitive mass production vehicle launches
By placing product competitiveness at the center of the Honda Automobile Business Reorganization, Honda aims to deliver vehicles that meet changing consumer expectations while restoring sustainable profitability. The integration of Honda R&D and the renewed focus on SDV-driven innovation signal a decisive effort to reposition the company in an increasingly software-centric automotive landscape.
Company Press Release
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