Sony and Honda cancel the Afeela 1: the $100k EV that won't reach California

Sony Honda Mobility ends the Afeela 1, the $100k EV planned for California, following a restructuring of Honda's strategy.

Sony Honda Mobility announced the discontinuation of the Afeela 1, an electric sedan priced around $100,000 that was set to launch only in California later this year.

The decision comes weeks after Honda disclosed a $15.7 billion loss in its EV business and announced the cancellation of production for three electric models.

What was the Afeela 1

The vehicle was described as a car packed with technology: 28 speakers, immersive screens, and an AI assistant, with options for karaoke or PlayStation games.

The Afeela 1 was supposed to offer level 2 autonomy, featuring 18 cameras, 9 radars, 12 ultrasonic sensors, and LiDAR.

• Estimated price around $100,000
• It had potential for integrated entertainment and an AI assistant

Reason and Impacts

Sony Honda Mobility stated that it will not be able to use some technologies and assets originally planned due to the sudden change in Honda's strategy.

The company will refund customers who paid $200 to reserve the vehicle, although the number of interested parties has not yet been disclosed.

Market Context and Next Steps

The news adds to challenging results for EVs: Honda recorded its first annual loss in nearly seven decades as a publicly traded company, and Ford and Stellantis also registered losses related to EVs.

Analysts say that, given the conditions, it makes sense to close the project for now; it's a matter of timing. Still, the companies indicate they may resume discussions in the future.

Even with expectations of heating interest in EVs due to high gasoline prices, the current moment is not favorable for new entrants. Among the references: the average fuel price in California was $5.83 per gallon, and Tesla is focusing on AI and autonomous driving, while Elon Musk's reputation has faced scrutiny.

Sony and Honda continue to dialogue about future plans. It is worth remembering that Apple also tried to launch an EV for over 10 years, ending the project in 2024.

If changes occur, the Afeela 1 may be shelved or scrapped. The current market timing, however, is challenging.

Leave in the comments: do you believe this type of partnership between technology and automotive giants has a future, or does this case already show the limits of the EV market today?