Sony and Honda Halt Afeela EV Plans Amid Slow Demand

Sony and Honda have decided to discontinue their Afeela electric vehicle plans, citing slower demand for EVs and changes in policy as the driving factors behind the decision.

The joint venture, known as Sony Honda Mobility (SHM), announced that it would be canceling the $90,000 Afeela 1 electric sedan as well as the unnamed Afeela SUV concept that was showcased at CES 2026. In a statement, the company said that it had determined there was not a "viable path forward" for these models after Honda recalibrated its EV strategy in the face of steep losses.

Earlier this month, Honda revealed that it would be taking a writedown of up to 2.5 trillion yen ($15.7 billion) on its EV investments, marking the company's first annual loss in over 70 years as a public entity. The automaker also made the decision to cancel certain zero-emission vehicle plans and reconsider its tariff strategy for electric vehicles.

The discontinuation of the Afeela models comes as a significant setback for the joint venture between Sony and Honda, which had positioned the Afeela brand as a key player in the rapidly evolving electric vehicle market. The companies had touted the Afeela as a technologically advanced and uniquely designed EV, with features such as in-vehicle sensors and cloud-based services.

However, the slowdown in EV adoption and the changing policy landscape have forced SHM to reevaluate its strategy and prioritize more cost-effective and practical EV models that can better meet the needs of the market.

The decision to discontinue the Afeela models is a significant setback for Sony and Honda, who had invested heavily in the joint venture and were hoping to establish a strong presence in the growing electric vehicle industry. The companies will now need to assess their options and determine a new direction for their collaboration as they adapt to the changing market conditions.

Despite the discontinuation of the Afeela models, the joint venture between Sony and Honda is expected to continue, with the companies likely focusing on more affordable and practical EV models that can better align with current market demands and policy shifts.