KATHMANDU: Sony Group and Honda Motor have decided to stop development of their joint electric vehicle project, according to global media reports.
The decision affects the Afeela EV lineup being developed under their 50-50 joint venture, Sony Honda Mobility, established in 2022.
Both companies said changes in the EV market and a shift in Honda’s electrification strategy led to the move. They noted that key assumptions behind the project, including the use of Honda’s technologies and assets, had changed significantly.
As a result, Sony Honda Mobility has discontinued development and planned launch of its first model, Afeela 1, along with a second model. The company will now review its overall business direction.
The Afeela 1 was initially planned for the US market, with prices starting from $89,900. Customers who made reservations in California will receive full refunds.
Honda has recently scaled back its EV plans. The company canceled three EV launches planned for North America and expects losses and expenses of around 2.5 trillion yen as it reassesses its strategy amid slowing global EV demand.
Honda CEO Toshihiro Mibe had earlier described Afeela as a key part of its software-defined vehicle (SDV) strategy. However, future decisions on the joint venture will now be discussed between both partners.
For Sony, the project was part of its plan to expand beyond hardware into mobility and entertainment services. The company aims to integrate gaming, imaging sensors, and in-car entertainment into next-generation vehicles.
Despite the project halt, Sony said the impact on its financial performance is expected to be minimal, as the venture followed an asset-light approach.
