Sony Honda Mobility, a joint venture between Sony and Honda, has canceled the development of its Afeela electric vehicles, including the Afeela 1 sedan. The decision follows Honda’s recent overhaul of its EV business, which included a $15.7 billion writedown and the cancellation of several planned electric models. The Afeela 1, priced at approximately $100,000, was set to launch exclusively in California later this year. Sony Honda Mobility will issue full refunds to customers who had reserved the vehicle.
The joint venture cited Honda’s strategic shift away from EVs as the primary reason for the cancellation. Honda had previously announced it would cancel production for three of its own electric models, significantly impacting Sony Honda Mobility’s business case. The company stated it would no longer be able to utilize certain technologies and assets originally planned for the Afeela.
Sony Honda Mobility had showcased the Afeela at the Consumer Electronics Show (CES) earlier this year and had begun taking reservations for the vehicle. The cancellation comes as Honda reassesses its EV strategy, potentially shifting toward a more hybrid-heavy lineup. Analysts suggest Honda is likely reassessing how to build profitable EVs without relying on government incentives.
The Afeela 1 was designed to feature multiple screens, advanced AI, and autonomous driving capabilities. Despite its cancellation, the vehicle remains available in the PlayStation racing game Gran Turismo 7, where it was added in a 2025 update. Sony Honda Mobility has stated it will continue discussions with its parent companies regarding its future plans.
Honda’s financial impact from the move is expected to be immaterial, according to a statement from the company. Sony also stated that the discontinuation would not have a material impact on its financial situation. The joint venture was formed to combine Honda’s vehicle engineering expertise with Sony’s software and gaming technology to compete in the EV market.