Alert: Honda ends Afeela with Sony

Honda and Sony discontinue the Afeela 1 and the SUV, restructuring the EV strategy, with high costs and impacts on the American market.

The joint announcement by Honda and Sony confirms the discontinuation of the Afeela 1, the electric sedan with PlayStation appeal, as well as the electric SUV that would accompany the line. The decision comes as Sony Honda Mobility, the partnership known as SMH, is being reevaluated.

The production of the two upcoming Afeela models was scheduled to take place at Honda's EV Hub in Ohio.

On March 12, Honda announced a reform of its electrification strategy, canceling the Honda 0 Series and the Acura RDX for the US, with launches scheduled for 2026.

Reports indicate that technological assets provided by Honda for the partnership have been fundamentally altered, leading to the discontinuation of the two upcoming Afeela models.

Honda and Sony will continue to evaluate the future of SMH and should announce news about the joint venture as soon as possible.

After recording its first annual loss in almost 70 years, Honda acknowledged that it failed to offer products with a competitive cost-benefit ratio compared to newer EV rivals, which affected its competitiveness.

In the US, its main market, the company faces higher import costs and policy changes that impact sales, amidst management changes.

Restructuring costs could reach 2.5 trillion yen (approx. US$ 15.7 billion) due to the strategy change and the cancellation of the EVs.

Production, delivery, and pricing details

• The Afeela 1 had already started test production last year; the SUV was scheduled for arrival in 2028.
• Production would take place at the Ohio EV Hub, where the models were scheduled to begin production.
• Delivery of the Afeela 1 to customers in the US was expected in California by the end of 2026, with Arizona following in 2027.
• The electric sedan has a starting price of US$ 89,900 and an estimated range of up to 300 miles according to the EPA.
• After opening pre-orders, Honda/Sony Mobility stated they will refund US$ 200 to those who had already placed an order.

Financial summary: restructuring costs that could reach 2.5 trillion yen.

What is your opinion: will partnerships between automakers and technology companies thrive in the EV market or face major challenges in the future?