Sony and Honda Scrap AFEELA Electric Car Project
▼ Summary
– Sony Honda Mobility has cancelled its AFEELA 1 sedan and a planned SUV, closing its new California showroom less than a year after opening.
– The cancellation is a direct result of Honda’s broader strategic retreat from EVs, which removed the technical platforms the joint venture’s cars required.
– The AFEELA 1 had reached pre-production and was weeks from first deliveries, while the SUV prototype was targeted for a 2028 launch.
– Honda’s larger EV reversal involves cancelling three other US models and taking a restructuring charge of up to $15.7 billion, leading to its first annual loss since 1957.
– The joint venture was founded on combining Honda’s automotive engineering with Sony’s software and entertainment to differentiate its in-car experience.
The ambitious AFEELA electric vehicle project from Sony Honda Mobility has been terminated, a direct result of Honda’s sweeping strategic retreat from the EV market. This decision cancels both the AFEELA 1 sedan and a planned SUV, leaving a dedicated California showroom without the vehicles it was built to sell. The joint venture determined it lacked a viable path to production after Honda withdrew the essential EV platforms and technology the cars were designed to use.
This move follows Honda’s major corporate reversal announced earlier this month, which saw the cancellation of three other US-market EVs and a massive restructuring charge nearing $15.7 billion. That strategic shift is projected to push Honda into its first annual loss in nearly seven decades. The AFEELA program became an immediate casualty, as its foundation was inextricably linked to Honda’s now-abandoned proprietary technology. The AFEELA 1 had reached pre-production status in Ohio and was weeks from its first customer deliveries, while the SUV prototype unveiled at CES was targeted for a 2028 launch. All customer deposits will be refunded.
Established in 2022, the joint venture aimed to blend Honda’s automotive engineering with Sony’s prowess in software, gaming, and entertainment. The core premise was that the next competitive frontier for electric vehicles would be the in-car experience, leveraging assets like the PlayStation platform and Sony’s content library to create a unique product. The AFEELA 1 sedan, priced from $89,900, was equipped with an extensive 40-sensor suite for advanced driver-assistance and offered an estimated 300-mile range.
However, the project faced significant economic headwinds from the start. Its premium pricing positioned it against a market increasingly focused on affordability, not luxury. Aggressive competition from Chinese manufacturers entering the global premium segment, combined with shifting regulatory landscapes like the elimination of US EV tax credits, created a challenging environment. Honda cited these market changes, including new tariffs and intense competitive pressure, as key factors behind its broader EV pullback.
The collapse of the AFEELA project is part of a wider industry reckoning. Major automakers, including General Motors, Stellantis, and Ford, have collectively announced writedowns and strategic pivots on their EV ambitions totaling approximately $67 billion. Despite the cancellation, both Sony and Honda state that their consolidated financial forecasts for the current fiscal year remain unchanged. The companies have committed to evaluating the future of their joint venture and will announce a new strategic direction in due course.
(Source: The Next Web)