Sony and Honda have abandoned their electric vehicle project, AFEELA.

      Sony Honda Mobility has ceased production of both its AFEELA 1 sedan and an unspecified follow-up SUV, shortly after launching a dedicated showroom in California. Honda’s extensive retreat from the electric vehicle sector left the joint venture lacking the technical resources required to produce either model.

      Just nine days after the opening of the AFEELA Studio and Delivery Hub in Torrance, California, the joint venture revealed it was canceling both vehicles intended for sale at the showroom. The AFEELA 1 sedan, which had progressed to the pre-production phase at Honda’s East Liberty Auto Plant in Ohio and was weeks away from its first deliveries in California, will no longer be available to customers. The unnamed electric SUV, which had been presented as a prototype at CES 2026 and was slated for a 2028 release, has also been canceled. Those who made reservations will receive full refunds of their $200 deposits.

      This announcement follows a significant strategic shift from Honda, revealed on March 12, in which the automaker canceled three electric vehicles for the US market: the Honda 0 Saloon, the Honda 0 SUV, and the Acura RSX, while announcing a restructuring charge of up to 2.5 trillion yen, roughly $15.7 billion, to be allocated across the current and next fiscal year.

      As a result, Honda is expected to record its first annual loss since its listing on the Tokyo Stock Exchange in 1957. The AFEELA project was directly affected; the vehicles were based on Honda’s exclusive EV platforms and technology, and once Honda retracted those assets, SHM concluded it “does not have a viable path forward to bring the models to market as originally planned.”

      Established in September 2022, Sony Honda Mobility is a joint venture that merges Honda’s engineering and manufacturing capabilities with Sony’s software and entertainment expertise. The initiative was based on the belief that the next advancement in EVs would center on the in-car experience, rather than just the drivetrain, with Sony's extensive background in consumer electronics, its PlayStation platform, and its entertainment content library offering a unique differentiation that traditional automotive manufacturers could not achieve.

      The AFEELA 1 was priced starting at $89,900 for the base Origin trim, with the Signature trim at $102,900, featuring a suite of 40 sensors, including cameras, lidar, and radar, designed for hands-free autonomous driving. It boasted a 300-mile EPA-estimated range and a 150-kilowatt charging rate.

      The economic viability of the venture was always questionable. At $89,900, the AFEELA 1 faced competition not only from Tesla but also from an EV market that has been trending toward lower price points rather than higher. Chinese manufacturers have been aggressively entering the premium segment globally, while US EV tax credits have been withdrawn under the Trump administration and demand in Europe has been weaker than expected.

      Honda attributed “recent changes in the business environment,” including tariffs and competitive pressures from Chinese manufacturers, as reasons for its broader retreat from the EV market. The industry's cumulative reduction in EV ambitions now totals around $67 billion, with General Motors warning of a $7.6 billion impact, Stellantis signaling $25 billion, Ford at $19 billion, and Honda at $15.7 billion.

      Both Sony and Honda have indicated that the cancellation of AFEELA will not impact their updated full-year consolidated financial forecasts for the fiscal year ending this month. The companies have stated they will continue to assess the future of the SHM joint venture, with a new mid- to long-term strategy to be disclosed “at the earliest possible opportunity.”