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Radical U-turn for Honda

This strategic move is a direct response to the shocking efficiency of Chinese manufacturers

Apr 8, 2026 11:15 60

Radical U-turn for Honda  - 1

Japanese giant Honda is taking a radical U-turn, which many would call a “return to its roots“, to survive in the relentless battle with the advancing Chinese technological predators. Pressed against the wall, Toshihiro Mibe candidly admits what many in the industry only whisper: traditional development methods no longer work against the speed of light, with players like BYD and Geely operating. Not to remain a mere bystander to its own ouster from the market, the company is reviving its legendary model of independent engineering thinking that made it a global icon in the last century.

This strategic move is a direct response to the shocking efficiency of Chinese manufacturers, who manage to get a new model on the road in just 18 months - a pace that makes conservative car factories look like clumsy antiques. Honda's sales in China have fallen by nearly a quarter in the past year, prompting management to halt attempts at centralization and give its visionaries full freedom. It's clear that "business as usual" is no longer an option if the brand wants to stand a chance in the era of software-defined cars and artificial intelligence.

Instead of seeking salvation in foreign hands, as Nissan and Toyota have done through partnerships with Chinese companies, Honda is choosing the path of the "lone wolf". It's a romantic but extremely risky gamble. The idea is to recreate the magic of the 1960s, when the autonomous development unit created the revolutionary CVCC engine and the timeless Honda Civic. The goal today is the same - to break down bureaucracy and unleash creativity that will transform electric mobility from a boring commute into a technological adventure.

In parallel with the internal reorganization, the company is also looking to new production horizons, with India emerging as the “secret trump card“ for budget electric vehicles. But will this “back to the future” strategy be enough to catch up, or is it just a belated attempt to revive a bygone glory? In a world where batteries and algorithms dictate the rules, the bet on engineering intuition is the boldest move Honda has made in decades. The road ahead of the brand is littered with question marks, but one thing is certain – the Japanese refuse to give up without a fight.