A Sony Honda Mobility announced on Wednesday (25) that will halt the development of Afeela electric vehiclesafter the Japanese automaker reduced ambitions in the area.
Honda announced earlier this month a writedown of up to 2.5 trillion yen ($15.7 billion) related to cuts in plans involving electric vehicles. This caused the company to record its first annual loss in almost 70 years as a publicly traded company.
Under President Donald Trump, demand in Europe has been weaker than expected. This has forced automakers such as Ford and Stellantis to post huge losses.
For Sony, the withdrawal over the Afeela line makes it the latest technology company to abandon a project in the area, highlighting how difficult it is for new entrants to enter a market dominated by fast-evolving Chinese rivals.
Apple froze its decade-old electric car development more than two years ago, while Chinese smartphone maker Xiaomi bucked the trend with the SU7 sedan.
No path to market
Sony Honda Mobility said Honda’s decision left the partnership without a viable path to bring Afeela models to market, as it could no longer use technologies and assets expected from Japan’s second-largest automaker.
The joint venture said it will issue full refunds to California customers who reserved the Afeela 1, its first planned model, and will continue discussions with Sony and Honda about next steps.
The market had expected deliveries in California to begin later this year, with a second model based on a newer prototype expected in early 2028. Orders for the Afeela 1 opened last year, with prices starting at US$89,900.
Sony Honda Mobility was created to combine Honda’s engineering and manufacturing with Sony’s software and entertainment capabilities.
