Honda and Sony have jointly announced the cancellation of their ambitious Afeela electric vehicle program, abruptly ending development of both the planned Afeela 1 sedan and a follow-up electric SUV. This decision follows a broader shift in Honda’s EV strategy, which included scrapping two other EV models and a revival of the Acura RSX.
Strategic Reassessment Drives Cancellation
The joint venture, Sony Honda Mobility (SHM), cited “fundamental alterations” in the underlying assumptions of its operations as the primary reason for the shutdown. Specifically, Honda’s revised electrification plans impacted the technologies and resources initially pledged to the partnership.
The Afeela 1, originally slated for customer deliveries in late 2024 with a $102,900 Signature trim, and a more affordable Origin model planned for 2027, will no longer proceed. Pre-production had already commenced at Honda’s Ohio plant, making the late-stage cancellation particularly significant.
Broader Honda EV Cuts
This move comes amid substantial losses projected by Honda—estimated at up to $15.8 billion—following the cancellation of the 0 SUV, 0 Sedan, and Acura RSX EVs. Automakers rarely halt projects once they reach pre-series production, suggesting a severe reevaluation of market viability.
Future of the Joint Venture
While the Afeela program is dead, Honda and Sony have not dissolved their partnership. The companies intend to “review SHM’s business direction” and will announce future plans “at the earliest possible opportunity.” This suggests a potential pivot rather than complete abandonment of collaborative mobility projects.
The abrupt termination underscores the volatility of the EV market and the challenges facing automakers as they navigate shifting consumer demands and technological uncertainties. Honda’s decision signals a cautious approach, prioritizing financial stability over aggressive expansion in the EV segment.
