Sony and Honda announced their partnership back in 2022, forming the Sony Honda Mobility joint venture to produce two Afeela EVs. However, due to Honda’s reassessment of its EV strategy, which saw it drop three EV models from its own lineup, SHM’s Afeela EV will not make it to production.
News of the upcoming Sony EV spread like wildfire after the consumer electronics company showcased a concept electric sedan at CES 2020, followed by an SUV in 2021.
Forming SHM a year later, the two manufacturing giants, Sony and Honda, partnered to build the concepts that had impressed the masses. On top of this, the EV trend had just taken off, which gave both brands a sense that the timing was right.
SHM was to begin deliveries of the Afeela1 later this year, starting with the launch variant called the Signature, which was to retail at $102,900. A more affordable variant called the Origin, which was to retail at $89,900, was intended to go on sale in 2027.
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However, given the changes within Honda, the Japanese automaker and Sony released a joint statement, stating that they were canceling the two models that were under development.
“As a result of Honda’s reassessment of its automobile electrification strategy announced on March 12, 2026 and factoring the changes to the EV market, the underlying assumptions of SHM’s business operations such as the utilization of certain technologies and assets planned to be provided by Honda were fundamentally altered, resulting in the announcement by SHM today to discontinue the development and launch of its first model, AFEELA1, and its second model.”
The statement added that both brands will “review SHM’s business direction,” suggesting that they will likely formulate a fresh strategy rather than part ways. This was confirmed after SHM stated that they will reveal their “mid- to long-term positioning, as well as contributions to the future of mobility, at the earliest possible opportunity.”
Honda Backtracks on EV Strategy
The joint announcement comes days after Honda announced a $15.7 billion writedown of its electric vehicle (EV) business as a result of weak demand for EVs. Three EV models have been canceled as part of the restructuring that were planned to be made and sold in the U.S.
Honda scrapped plans to launch the 0 series saloon, the 0 SUV, and the Acura RSX. Instead, the company will shift priority to producing hybrid vehicles. Honda said in a statement:
“In such a difficult competitive environment, Honda was unable to deliver products that offer value for money better than that of newer EV manufacturers, resulting in a decline in competitiveness.”
Honda confirmed that it will announce its mid- and long-term strategy in a press conference in May.
