Sony Honda Mobility Cancels Afeela EV Development, Refunds Deposits
Sony Honda Mobility (SHM), the joint venture between Japanese electronics giant Sony and automaker Honda, has announced the discontinuation of its Afeela electric vehicle development program. The company will refund deposits to early buyers who had reserved the vehicle, marking a significant shift in strategy for the partnership. The announcement was made on Wednesday, March 25, 2026.
Background on Afeela
The Afeela EV was first unveiled as a concept vehicle, aiming to combine Sony’s expertise in entertainment and technology with Honda’s automotive engineering prowess. The vehicle was positioned as a next-generation mobility solution, boasting advanced autonomous driving capabilities, immersive sound systems, and a visually engaging user experience. Reservations for the Afeela 1 were being accepted, with a starting price of $89,900 [Sony Honda Mobility]. The vehicle was slated to enter production at Honda’s Ohio factory.
Honda’s Broader EV Strategy Shift
This decision follows Honda’s recent announcement to pause EV production in North America, canceling plans for three U.S.-built EVs [Reuters]. While Sony Honda Mobility had been “operating as usual” following initial reports of Honda’s shift, the parent companies have now determined the impact on the joint venture necessitates halting Afeela development [Car and Driver].
Impact on Reservations and Future Plans
Customers who had placed reservations for the Afeela 1 will receive full refunds. Sony and Honda are currently in discussions regarding the future of Sony Honda Mobility and how to proceed given the changed circumstances. A spokesperson for Sony Honda Mobility stated that there is no further information available at this time regarding the company’s future plans [Car and Driver].
Recent Developments Prior to Cancellation
Prior to the cancellation announcement, Sony Honda Mobility had been actively progressing with the Afeela project. In March 2026, the company announced the grand opening of the Afeela Studio & Delivery Hub in Torrance, California [Sony Honda Mobility]. They also collaborated with artist Hajime Sorayama and showcased advancements in AI-based trajectory inference for autonomous driving [Sony Honda Mobility].
Key Takeaways
- Sony Honda Mobility is ceasing development of the Afeela EV.
- Customers with reservations will receive full refunds.
- The decision is linked to Honda’s broader shift in its North American EV strategy.
- The future of Sony Honda Mobility is currently under discussion.