Sony Honda Mobility Abandons Afeela EV Project
Sony Honda Mobility (SHM) has announced the discontinuation of development and launch plans for its first model, the Afeela 1 electric sedan, and its second planned Afeela vehicle. The decision, made following discussions between parent companies Sony Group Corporation and Honda Motor Co., Ltd., marks a significant shift in the joint venture’s strategy and raises questions about its future.
Honda’s Strategy Shift Drives Cancellation
The cancellation stems from Honda’s recent reassessment of its automobile electrification strategy, announced on March 12, 2026. This reassessment led to Honda determining it would be unable to provide certain technologies and assets initially planned for use by SHM [Sony Honda Mobility]. Without access to these resources, SHM concluded it lacked a viable path to bring the Afeela models to market as originally envisioned [Sony Honda Mobility].
Afeela 1 and Future Models Scrapped
The Afeela 1 sedan was slated to initiate sales later in 2026, initially in the United States, with an electric crossover also under development [MotorTrend]. The vehicles were to be based on Honda’s 0 Series architecture and manufactured in East Liberty, Ohio [MotorTrend]. Though, Honda has also cancelled its own planned EVs based on the 0 Series platform, including the 0 Series SUV and sedan, as well as the Acura RSX [MotorTrend].
Reservations Refunded, Future of SHM Uncertain
SHM will issue full refunds to customers who have already placed reservations for the Afeela 1 in California [Sony Honda Mobility]. The joint venture is now engaged in discussions with Sony and Honda to determine its future business plans [TechCrunch]. The future of the joint venture itself is now in question [MotorTrend].
Background: The Sony Honda Mobility Venture
Established in September 2022, Sony Honda Mobility aimed to combine the technological strengths of Sony and Honda to develop and sell high-value mobility products and services [Sony Honda Mobility]. Sony initially showcased its interest in the automotive market with the Vision-S concept vehicle at the 2020 Consumer Electronics Show [TechCrunch].
Honda’s Broader EV Strategy Adjustment
Honda’s decision to halt its own EV development plans is attributed to financial losses and slowing demand for electric vehicles [MotorTrend]. The company is now shifting its focus towards hybrid vehicles and plans a significant overhaul of its hybrid lineup [MotorTrend].