Sony Honda Mobility has halted production of its AFEELA 1 sedan and a subsequent SUV, less than a year after launching a showroom in California. Honda’s extensive EV pullback left the venture lacking essential technical resources to produce the cars.
Just over a week after opening its AFEELA Studio in Torrance, California, Sony Honda Mobility announced the cancellation of the cars the showroom was intended to promote.
The AFEELA 1 sedan, which was nearing production at Honda’s Ohio plant, won’t reach buyers. The unnamed SUV, showcased as a prototype at CES 2026 for a 2028 debut, also won’t proceed. Those with reservations will get a full refund of their $200 deposit.
The announcement followed Honda’s broader strategy shift, revealed on March 12. Honda cancelled three US electric vehicles, the Honda 0 Saloon, the Honda 0 SUV, and the Acura RSX, leading to a restructuring charge up to 2.5 trillion yen (about $15.7 billion) over two fiscal years.
This move will result in Honda’s first annual loss since its Tokyo Stock Exchange listing in 1957. AFEELA suffered directly, as its cars relied on Honda’s EV technology, which was withdrawn, leaving SHM without a workable plan to market its models as intended.
Sony Honda Mobility was formed in September 2022, merging Honda’s manufacturing prowess with Sony’s software and entertainment strengths.
The idea was that future EVs would focus on the in-car experience, with Sony’s electronics, gaming platform, and content enhancing the vehicle in ways traditional manufacturers could not.
The AFEELA 1 ranged from $89,900 for the Origin trim to $102,900 for the Signature trim, featuring a 40-sensor system for potential autonomous driving, a 300-mile range, and a 150-kilowatt charge rate.
The financial dynamics were challenging. Priced at $89,900, the AFEELA 1 faced competition not only from Tesla but also as the EV market trended towards more affordable options. Chinese brands have been entering the premium segment aggressively, while US EV tax credits were removed during the Trump era and European demand was below expectations.
Honda cited “recent business environment changes”, such as tariffs and Chinese competition, among reasons for its EV cutbacks. The industry has collectively written down about $67 billion in EV ventures: General Motors anticipates a $7.6 billion loss, Stellantis $25 billion, Ford $19 billion, and Honda’s $15.7 billion.
Sony and Honda indicated that the AFEELA halt won’t impact their overall financial projections finishing this fiscal year. They continue assessing SHM’s future direction, with an updated long-term strategy to be announced “as soon as possible.”