TOKYO: In an effort to accelerate vehicle electrification, Honda Motor Co. is moving to form alliances with other firms and reorganize its parts procurement network.

The company aims to actively roll out vehicles equipped with self-driving technology and connected cars as well as electric vehicles.

Honda earlier this month announced a basic agreement with major information technology service provider SCSK Corp. for the development of on-vehicle software, believing that such software is a fundamental technology that determines the value of next-generation vehicles.

Specifically, the two companies are expected to jointly develop electronic systems for vehicles and control software for autonomous driving, with Honda planning to accept around 1,000 IT engineers from Tokyo-based SCSK by 2030.

In March, Honda reached a basic partnership agreement with Indian in-car software developer KPIT Technologies Ltd.

The automobile industry is in the midst of a once-in-a-century period of innovation, such as a shift toward EVs in line with global moves for decarbonization.

Against this background, Honda has set a target of having EVs and fuel cell vehicles account for all new vehicles it sells worldwide in 2040.

To meet this goal, Honda plans to build a new domestic plant for EV batteries with major battery manufacturer GS Yuasa Corp., aiming to launch the joint project by the end of this year.

Meanwhile, the EV shift means that Honda needs to review its relations with partners that have provided parts for Honda’s gasoline engine vehicles.

On July 4, Honda announced a plan to sell Yachiyo Industry Co., a fuel tank-making subsidiary that had also manufactured Honda minivehicles previously, to a company affiliated with an Indian auto parts maker.

The pace of vehicle electrification around the world is “faster than expected,” Honda President Toshihiro Mibe has said, showing a sense of crisis.

“While clarifying how things will change over time, we aim to move into an era of new mobility,” he said.

JIJI Press