Sony Honda Mobility (SHM) has officially discontinued development of its highly anticipated Afeela electric vehicles for North America, including the flagship Afeela 1 sedan and a planned second model. The announcement on March 25, 2026, marks the abrupt end of a project that once promised to blend Honda’s engineering with Sony’s entertainment and technology expertise.
The joint venture cited fundamental changes following Honda’s reassessment of its electrification strategy earlier in March. Honda scaled back several EV plans, including its “0 Series” lineup, and took a massive writedown of up to $15.7 billion. This shift—driven by U.S. tariffs, softening global EV demand, intense competition from Chinese manufacturers, and weaker product appeal in key markets—eliminated critical technologies and assets that SHM had counted on from Honda. Without them, the partners determined there was “no viable path forward” for the Afeela models.
The Afeela 1, a premium electric sedan priced around $90,000–$103,000, had been positioned as a tech-forward “mobility entertainment space,” complete with advanced autonomous features and immersive audio-visual experiences reminiscent of a PlayStation experience. Pre-production had already begun at Honda’s East Liberty plant in Ohio, with initial deliveries expected in California later in 2026. Early reservation holders are receiving full refunds.
This cancellation has become a major talking point in weekend industry recaps, highlighting the broader challenges facing the EV sector. Many automakers are now reassessing aggressive electrification timelines amid slowing sales and policy changes. Sony and Honda stated the move will not materially impact their finances and plan to continue discussions on the future direction of the joint venture. For now, the dream of a Sony-powered Honda EV sedan appears shelved indefinitely.