Sony-Honda Joint Venture Terminates Afeela EV Development Months Before Planned Launch

Sony Honda Mobility (SHM), the joint venture between Sony Group and Honda Motor Company, has decided to cancel both its planned Afeela EV models, the first of which was scheduled to go on sale later this year. After multiple years of development and showcases, the Afeela 1 and another model said to be in development will no longer be launched. Customers who have pre-booked will receive full refunds.

The company has said in a statement that it “will continue discussions with Sony and Honda regarding its future business plans”, but has stopped short of announcing that it is ending all business operations. It is not yet clear what will happen to its employees in Japan and the US. The company announced only last week that it was opening a new showroom and delivery centre in Torrance, California.

The news comes just weeks after Honda shocked the world by announcing it was cancelling its own 0 Series electric saloon and SUV, as well as the planned Acura RSX, which had been a key part of its electrification strategy in the US. At the time, the company said unexpected changes in US EV policy and a global slowdown in demand had forced a reassessment of its strategy. Honda expects it will have to write off at least $15.8 billion in R&D, tooling, and other costs as a result. Interestingly, Honda has committed to continuing the India-focused 0 Alpha EV project, and has begun production of it for the domestic market as well as exports, at its Tapukara, Rajasthan plant.

SHM directly attributed its own cancellation to Honda’s move, saying “As a result of Honda’s reassessment of its automobile electrification strategy announced on March 12, 2026, SHM will not be able to utilize certain technologies and assets that were originally planned to be provided by Honda at the time of SHM’s initial business planning. In light of this change, SHM has determined that it does not have a viable path forward to bring the Models to market as originally planned.”

The joint venture between Sony and Honda was first announced in mid-2022, building on a series of concept electric cars that Sony had already exhibited beginning at CES in 2020. The idea was for two of Japan’s biggest manufacturing companies to combine their expertise in electronics and automobiles, giving both a path forward in a market that was clearly heading towards a software-defined, experience-led future. The Afeela name debuted at CES 2023 along with a fresh prototype.

With its distinctly luxury positioning, the Afeela 1 sedan was officially unveiled at CES 2025. The company began accepting pre-bookings with deliveries planned for late 2026. The Afeela 1 he Afeela 1 had an all-wheel drive electric powertrain with two 180 kW motors, rated for a combined 360 kW and 490 ps. It had a 91 kWh battery pack with support for 150 kW DC fast charging. Range was claimed to be 480 km per charge.

Other highlights of the car were its 40 sensors enabling up to L4 autonomous driving, immersive entertainment with PlayStation integration, and AI voice assistant. A “media bar” screen on the front bumper was intended to offer interaction with the outside world, showing custom text, lighting, and even emojis. The car was to be assembled in the USA and was priced starting at $89,900 (approximately ₹8.45 lakh) for the basic Origin trim, available only in black. The premium Signature trim was priced at $102,900 (approximately ₹96.75 lakh).