Sony Honda Mobility, the joint venture between Sony and Honda, has discontinued its two electric vehicle models: the Afeela 1 sedan and Afeela 2 SUV. The decision follows Honda's reassessment of its electrification strategy on March 12, 2026, and comes amid slowing U.S. EV demand. The company will issue full refunds to U.S. customers who placed reservations.
Sony Honda Mobility Inc. (SHM), formed in 2022 after Sony's Vision-S concept at CES 2020, announced on March 25, 2026, that it will not proceed with production of the Afeela 1 sedan and Afeela 2 SUV. Prototypes were unveiled in January, with the sedan slated for U.S. deliveries in late 2026 at prices from $89,900 to $102,900 and the SUV following in 2028. Production was planned for Honda's East Liberty plant in Ohio.
The halt stems from SHM's inability to utilize certain Honda technologies and assets originally planned, following Honda's strategy reassessment. SHM stated it 'does not have a viable path forward to bring the models to market as originally planned.' Honda has also suspended development of three other EV models for North America and anticipates its first full-year net loss since 1957 for the fiscal year ending soon, due to EV business revamp costs. Challenges include slower U.S. EV sales compared to hybrids, initial Prologue success followed by declines, and the abolition of EV tax incentives by U.S. President Donald Trump last year.
SHM plans deep PlayStation integration, including Remote Play on in-car displays and customizable lighting, colors, and motor sounds. Full refunds will be issued for U.S. reservation fees. Sony, Honda, and SHM will continue discussing the JV's future, considering its original purpose and the evolving EV market.
