Sony and Honda Halt AFEELA Brand and First Model Development, Full Refunds Issued

Sony and Honda jointly announced the termination of the launch plan for the AFEELA 1, the first model under their joint venture Sony Honda Mobility (SHM), and simultaneously halted development of a second model. The AFEELA 1 was originally scheduled for market launch and delivery in 2024 and had already opened for pre-orders; the companies stated they will issue full refunds to all customers who placed reservations. The collaboration began in 2022, with Sony responsible for software systems and in-vehicle entertainment features, while Honda handled vehicle manufacturing and sales. The AFEELA brand and its prototype debuted at CES 2023, highlighting an immersive in-car gaming experience with support for PlayStation game streaming and a front “media bar” capable of displaying dynamic content. The AFEELA 1 measures approximately 4.9 meters in length, features a 91 kWh battery pack, delivers an EPA-estimated range of 482 kilometers, and is equipped with dual motors (combined output of 360 kW), air suspension, and DC fast charging capability up to 150 kW. Honda recently announced it would reassess its electrification strategy and now expects a net loss of between JPY 270 billion and JPY 570 billion for fiscal year 2026—the company’s first annual net loss since its listing in 1957. The primary causes include setbacks in its EV rollout and a significant decline in electric vehicle demand in the U.S. market. As a result, Honda has decided to cancel its planned battery-electric vehicle launches in North America. Sony stated that, given the joint venture’s “asset-light” operational model, the termination of the project will not have a material impact on its financial condition.