Sony and Honda Abandon Joint EV Project

Sony Honda Mobility, a partnership between Sony and Honda, has abandoned its development of two electric vehicles under the “Afeela” brand. This decision follows Honda’s recent announcement to cancel three electric vehicles intended for the U.S. market, a move spurred by President Trump’s tariffs and competition from China, potentially costing Honda nearly $16 billion. The joint venture initially planned to leverage Honda’s technologies for the Afeela sedan and SUV, but Honda’s strategic shift means these vehicles can no longer be developed. The Afeela 1 sedan was set to debut this year with a starting price of around $90,000. It’s uncertain what lies ahead for Sony Honda Mobility or its employees in Tokyo and California. The company stated it will continue evaluating its future with Sony and Honda, aiming to announce its direction for SHM and its contributions to future mobility soon. Sony first expressed interest in vehicle production with a concept car, Vision-S, unveiled at the 2020 Consumer Electronics Show, designed to highlight Sony’s entertainment and tech capabilities. Initially thought to be a showcase vehicle, by 2022 Sony announced its partnership with Honda, planning to produce both a sedan and SUV, later revealing the Afeela brand. Since then, the U.S. EV market has experienced shifts due to tariffs, regulatory changes, and the removal of the federal EV tax credit, leading to turmoil among EV startups and major automakers alike. The Afeela EVs faced a challenging market landscape, competing against established luxury brands and advanced technologies, highlighting the difficulties in launching a new automotive company in the U.S., even with strong corporate backing.