The ambitious Afeela electric vehicle project, a joint venture between Honda and Sony, has been significantly scaled back with the cancellation of both the planned Afeela 1 sedan and a future SUV model. This decision follows Honda’s earlier move to abandon three EV projects slated for its Ohio facilities, reflecting a broader cooling in the U.S. electric vehicle market.
Cooling Demand and Business Realities
The joint statement from Sony and Honda cites altered business assumptions, particularly regarding the availability of key technologies and assets from Honda, as the primary driver behind the cancellations. The original plan hinged on leveraging Honda’s manufacturing capabilities, but changes in Honda’s EV strategy have made the Afeela project unviable in its current form.
Despite the setback, Sony Honda Mobility — the firm responsible for the Afeela brand — remains operational, albeit under review. The companies are reassessing their long-term strategy and promise an update “at the earliest possible opportunity.”
Market Factors and Potential Pivots
The shift comes amid declining EV sales following the expiration of the US$7,500 federal tax credit in September 2025. This policy change has demonstrably impacted demand, leaving Sony Honda Mobility with limited options. The most likely pivots include refocusing efforts on the Chinese market or abandoning the exclusive EV-only approach.
A Brief History of the Project
Sony first signaled its automotive ambitions with the Vision-S EV concept at CES 2020. This led to the Honda partnership and the development of the Afeela brand, culminating in the near-production reveal of the Afeela 1 sedan in 2025. Production was slated for Honda’s East Liberty plant, near the Marysville factory where the now-canceled Honda 0 Series EVs were to be built.
Key Specs and Pricing
The Afeela 1 sedan would have featured a dual-motor all-wheel drive system producing 360kW of power, powered by a 91kWh lithium-ion battery. EPA-estimated range was projected at 483km with DC fast charging support up to 150kW. The planned starting price was US$89,900 (A$129,000), positioning it competitively against high-end EVs like the Lucid Air. A follow-up SUV model was also planned for production in 2028.
The cancellation marks a major setback for Sony’s foray into the automotive industry, highlighting the challenges of entering a rapidly evolving and increasingly competitive market. The future of Sony Honda Mobility hinges on strategic realignment in the face of changing economic and policy conditions.
