Honda and Sony Scrap Afeela EV Project, Retreat from Electrification Strategy

Honda and Sony jointly announced the termination of all development and launch plans for the Afeela series of electric vehicles under their joint venture, Sony Honda Mobility (SHM). The project had already reached the final stage before mass production, with the first model, the Afeela 1, originally scheduled for delivery in Japan and the U.S. by mid-2026 at a starting price of $102,900. Both companies stated that Honda’s reassessment of its electrification strategy rendered the original business plan no longer viable. Amid weak EV demand in North America and significant financial losses, Honda is drastically slowing its electric vehicle transition. This includes halting multiple EV projects, revising down its 2030 battery-electric vehicle sales target to 700,000–750,000 units, and facing its first annual net loss since listing—projected at ¥420 billion to ¥690 billion. Sony noted that due to the joint venture’s “asset-light” operating model, the termination will have limited financial impact on the company. Analysts believe Sony may continue advancing its related technology initiatives, but the collaboration has officially come to an end.