In a surprising move for the electric vehicle industry, Sony Honda Mobility has officially scrapped development of its AFEELA electric vehicles, including the highly anticipated AFEELA 1.
The decision follows a broader strategic shift by Honda, which recently announced a major reassessment of its electrification plans—sending ripple effects through the joint venture it formed with Sony.
AFEELA EV Project Comes to an Abrupt End
Launched in 2022, Sony Honda Mobility aimed to combine Honda’s automotive engineering with Sony’s expertise in software, entertainment, and sensors to create a new generation of premium electric vehicles.
However, that vision has now been cut short.
The company confirmed it will discontinue both the AFEELA 1 production model and a second AFEELA vehicle that was already in development.
The key reason? Honda’s updated EV roadmap means critical technologies and assets originally promised to the partnership will no longer be available.
Without these resources, Sony Honda Mobility concluded it no longer has a viable path to bring the vehicles to market.
Refunds Issued to Reservation Holders
Customers who placed reservations for the AFEELA 1 in California will receive full refunds, according to the company.
The AFEELA 1 had generated early buzz with:
– A starting price of around $89,900
– Planned deliveries in California expected later this year
– A second model previously targeted for launch around 2028
Despite the initial excitement, those plans are now officially off the table.
Honda’s EV Pullback Triggers Industry Impact
Honda’s decision is part of a broader industry trend. The automaker recently revealed it could face a writedown of up to ¥2.5 trillion ($15.7 billion) as it scales back EV investments—potentially leading to its first annual loss in decades as a public company.
This comes at a time when:
– EV demand growth in Europe has slowed
– Policy support in the U.S. has become less certain
– Competition from companies like Tesla and rapidly growing Chinese EV brands has intensified
Other legacy automakers, including Ford and Stellantis, have also adjusted their EV strategies and booked significant writedowns.
A Tough Market for New EV Entrants
The cancellation of AFEELA highlights how difficult it is for new entrants—even those backed by global giants—to break into the EV market.
Sony’s attempt to expand beyond electronics into mobility ultimately underscores a broader reality:
Building competitive EVs at scale requires not just innovation, but massive, sustained investment and manufacturing expertise.
What’s Next for Sony Honda Mobility?
Despite canceling its flagship EV program, Sony Honda Mobility isn’t shutting down entirely.
The company says it will continue discussions with Sony and Honda about future business plans, though no details have been confirmed.
Both parent companies also stated that the cancellation is not expected to have a material impact on their financial positions.
