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The report, which did not disclose where the company would list its unit, said talks of the pros and cons of the plan were still at an early stage.
Honda did not immediately respond to a request for comment.
Earlier on Tuesday, the company said it plans to launch more than 10 electric motorcycle models globally over the next three years, as it aims to achieve carbon neutrality for motorcycles by the 2040s.
Honda dominates the global motorcycle business, but faces challenges in promoting higher-priced electric variants in developing economies.
The WSJ report also said some of Honda’s rivals in markets such as India have lapped the company in introducing battery-powered motorcycles and bikes.
