Mikkel Christensen
A high-profile partnership between two major Japanese companies has come to an abrupt halt.
A high-profile partnership between two major Japanese companies has come to an abrupt halt.
Plans to bring a new electric vehicle brand to market have now been dropped.
The decision reflects wider pressures facing automakers in an increasingly competitive EV market.
Project cancelled
Sony has confirmed that development of its Afeela electric vehicles will not continue, ending its collaboration with Honda.
The project, led by the joint venture Sony Honda Mobility (SHM), included the Afeela 1 sedan and a second planned model, Drive.com.au reported.
The move follows Honda’s decision earlier in March 2026 to reassess its electrification strategy.
Strategy shift
In a statement, SHM said: “As a result of Honda’s reassessment of its automobile electrification strategy announced on March 12, 2026, SHM will not be able to utilize certain technologies and assets that were originally planned to be provided by Honda at the time of SHM’s initial business planning.”
The company added: “SHM has determined that it does not have a viable path forward to bring the models to market as originally planned.”
Honda had already cancelled its own 0 Series EV lineup, according to Drive.com.au.
Market pressures
At the time, Honda said: “In such a difficult competitive environment, Honda was unable to deliver products that offer value for money better than that of newer EV manufacturers, resulting in a decline in competitiveness.”
The automaker pointed to slowing demand in markets such as the United States and Asia, as well as increasing competition from Chinese EV makers.
These factors ultimately undermined the joint Afeela programme.
Plans halted
The Afeela 1 was last shown in near-production form at CES 2025 in Las Vegas, Drive.com.au reported.
Deliveries had been planned to begin in California in mid-2026, before expanding across the US and later to Japan.
The model was expected to offer a 360kW dual-motor system, around 483km of range, and a starting price of $US102,900.
What comes next
Sony Honda Mobility said it will refund reservation deposits made in California.
Despite the cancellation, the company said discussions between Sony and Honda will continue regarding potential future projects, although no further details have been shared.
Sources: Drive.com.au, Sony Honda Mobility, Honda
