Sony Honda Halts Afeela EV Project

[Company Update] Sony and Honda have announced the termination of the Afeela electric vehicle development program, with their joint venture initiating a strategic reassessment.

Core Development: Flagship Cross-Industry EV Project Abruptly Ends

On March 25, 2026, Sony Group and Honda Motor Co. issued a joint statement confirming the discontinuation of development and market launch of the Afeela series of electric vehicles under their joint venture, Sony Honda Mobility. The project originally targeted the delivery of its first model, the Afeela 1, in mid-2026 in Japan and California, USA, with a starting price of USD 89,900.

Key Metrics: Massive Losses and Strategic Retreat Create Dual Pressures

The joint venture reported an operating loss of JPY 52 billion (approximately USD 362 million) in the last fiscal year—double the prior year’s figure. Meanwhile, Honda, amid a broader reassessment of its EV strategy, now forecasts a net loss of JPY 420–690 billion for fiscal year 2025, a stark contrast to its earlier projection of JPY 300 billion in net profit.

Strategic Foundation: Broken Resource Commitments Render Collaboration Unsustainable

Honda has canceled development of three North American EV models and significantly reduced its technical and production support for the joint venture, stripping Afeela of its manufacturing backbone. Although Sony led efforts in software and entertainment ecosystems, it lacked the capability to deliver a complete vehicle, ultimately failing to reverse the project’s decline.