Sony Honda Mobility cancels Afeela EV project

Sony Honda Mobility, the joint venture established by Sony and Honda, has decided to cancel the development of the two Afeela-branded electric vehicles it was developing. The announcement, made on Wednesday, marks a sudden end to the joint venture’s primary product roadmap. The decision follows Honda’s broader strategic retreat from the U.S. electric vehicle market, where the automaker decided to cancel three planned electric vehicles. According to Honda, the decision to cancel those vehicles was driven by President Trump’s tariffs and rising competition from China. This shift in strategy could cost Honda nearly $16 billion. Sony Honda Mobility stated that it had planned to use certain technologies and assets from Honda to build and support the Afeela vehicles, and that Honda’s change in strategy ultimately left the joint venture unable to proceed with development.

The Afeela 1 sedan was supposed to launch later this year with a starting price of around $90,000. The vehicle was originally conceived as a showcase for Sony’s technology, tracing back to 2020 when Sony first learned of public interest in building a car after presenting its Vision-S prototype at the Consumer Electronics Show. That prototype featured 33 sensors and was designed to demonstrate Sony’s entertainment and electronics capabilities. At the time, Kenichiro Yoshida, then-CEO of Sony, stated that the prototype represented the company’s contribution to the future of mobility. Following that reception, Sony announced a tie-up with Honda in 2022 to build the sedan and an SUV variant, and the two companies revealed the Afeela branding in 2023.

With the vehicle development now canceled, the future of the joint venture itself remains unclear. Sony Honda Mobility currently employs several hundred employees across its offices in Tokyo and California. In a statement, Sony Honda Mobility noted that it will continue to discuss and evaluate the future of the joint venture. The partnership added that the parties will “jointly announce SHM’s future direction, mid to long-term positioning as well as contributions to the future of mobility at the earliest possible opportunity.”

Why it matters

The collapse of the Afeela project highlights the volatility of the U.S. EV market, where shifting regulatory landscapes and intense competition are forcing even major legacy automakers to abandon high-profile, long-term electrification strategies.