Sony is pulling back from electric vehicle production: the joint project with Honda, the Afeela car, has been halted

In the early decade, Sony introduced the Vision‑S concept at the CES show in the United States, originally conceived as a platform for showcasing the brand’s automotive electronics. Later the company agreed with Honda to begin joint production of Afeela electric vehicles. The first generation was planned to be launched by the end of this year, but now both firms have abandoned further development of the initiative.

Sony Honda Mobility, a joint venture created several years ago, aimed to organize serial production of Afeela electric cars and their service. In January of this year the partners even unveiled a second generation of the model. This week, ahead of Japan’s fiscal year-end, Sony Honda Mobility announced the cessation of development and production of the Afeela 1 and Afeela 2 models. The company is preparing to review its business strategy and will announce new plans as opportunities arise.

For Honda Motor, which was supposed to take on the bulk of manufacturing these cars, the last few months have been financially challenging. In mid‑March, the company announced the need to write off $15.7 billion in losses due to reduced investment in its electric vehicle lineup. A strong dependence on the U.S. market led to a loss of demand for internal combustion engine vehicles, authorities’ withdrawal of subsidies for electric car sales, and Trump‑era import tariffs on overseas assembly. Additionally, collaboration with Aston Martin to develop engines for Formula 1 did not yield the expected results.