Sony and Honda discontinue Afeela EV joint venture | The VergeSkip to main contentThe homepageThe VergeThe Verge logo.The VergeThe Verge logo.TechReviewsScienceEntertainmentAIPolicyHamburger Navigation ButtonThe homepageThe VergeThe Verge logo.Hamburger Navigation ButtonNavigation DrawerThe VergeThe Verge logo.Login / Sign UpcloseCloseSearchTechExpandAmazonAppleFacebookGoogleMicrosoftSamsungBusinessSee all techReviewsExpandSmart Home ReviewsPhone ReviewsTablet ReviewsHeadphone ReviewsSee all reviewsScienceExpandSpaceEnergyEnvironmentHealthSee all scienceEntertainmentExpandTV ShowsMoviesAudioSee all entertainmentAIExpandOpenAIAnthropicSee all AIPolicyExpandAntitrustPoliticsLawSecuritySee all policyGadgetsExpandLaptopsPhonesTVsHeadphonesSpeakersWearablesSee all gadgetsVerge ShoppingExpandBuying GuidesDealsGift GuidesSee all shoppingGamingExpandXboxPlayStationNintendoSee all gamingStreamingExpandDisneyHBONetflixYouTubeCreatorsSee all streamingTransportationExpandElectric CarsAutonomous CarsRide-sharingScootersSee all transportationFeaturesVerge VideoExpandTikTokYouTubeInstagramPodcastsExpandDecoderThe VergecastVersion HistoryNewslettersArchivesStoreVerge Product UpdatesSubscribeFacebookThreadsInstagramYoutubeRSSThe VergeThe Verge logo.Sony and Honda ain’t feelin’ the Afeela anymoreComments DrawerCommentsLoading commentsGetting the conversation ready...TechCloseTechPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TechNewsCloseNewsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All NewsTransportationCloseTransportationPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TransportationSony and Honda ain’t feelin’ the Afeela anymoreThe $90,000 electric sedan is the latest EV to end up on the scrap heap, as automakers adjust to slower demand and policy whiplashes.The $90,000 electric sedan is the latest EV to end up on the scrap heap, as automakers adjust to slower demand and policy whiplashes.by Andrew J. HawkinsCloseAndrew J. HawkinsTransportation editorPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Andrew J. HawkinsMar 25, 2026, 12:40 PM UTCLinkShareGiftImage: Sony Honda MobilityPart OfThe great EV pullback: all the obstacles, cancellations, and delayssee all updates Andrew J. HawkinsCloseAndrew J. HawkinsPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Andrew J. Hawkins is transportation editor with 10+ years of experience who covers EVs, public transportation, and aviation. His work has appeared in The New York Daily News and City & State.Sony and Honda have lost that lovin’ Afeela.The joint venture announced today that it would be discontinuing the $90,000 Afeela 1 electric sedan, as well as the unnamed Afeela SUV concept, as it adjusts to slower EV demand and policy pullbacks. In a statement, Sony Honda Mobility (SHM) determined there was not a “viable path forward” after Honda recalibrated its EV strategy following steep losses.Earlier this month, Honda said it would take a writedown of as much as 2.5 trillion yen ($15.7 billion) on its EV investments, representing the company’s first annual loss in over 70 years as a public entity. The automaker also put the kibosh on several planned EVs, including the Honda Zero Series Saloon and SUV. Now, the axe has fallen on the Afeela as well.“Since its establishment in September 2022, SHM has aimed to develop and sell high value-added mobility products and to provide mobility-related services by combining the technologies, expertise, and development capabilities of Sony and Honda,” the joint venture said in a statement. “However, as a result of Honda’s reassessment of its automobile electrification strategy announced on March 12, 2026, SHM will not be able to utilize certain technologies and assets that were originally planned to be provided by Honda at the time of SHM’s initial business planning. In light of this change, SHM has determined that it does not have a viable path forward to bring the Models to market as originally planned.”SHM said it would refund customers who deposited $200 to reserve a future Afeela.RelatedSeven things I learned about the Sony car while playing Gran Turismo inside oneA closer look at Afeela’s SUV-like concept.Hands-on: Sony’s Afeela needs to be more than a feelingThe Sony-Honda joint venture first revealed its Vision-S concept at CES in 2020. Since then, the companies have inched closer to production, but not close enough to offer test drives or anything beyond a hands-on with the high-powered infotainment system. Earlier this year, SHM started trial production of the Afeela 1 at Honda’s East Liberty Auto Plant in Ohio. And at CES in January, the joint venture introduced an SUV concept that it said would also go into production.In some respects, Afeela felt more like a platform for Sony’s entertainment offerings than a driving machine. It featured screens across the width of the dashboard, 40 sensors and cameras for semi-autonomous driving assistance, all-wheel drive, and hints at augmented reality integration and “virtual worlds” embedded into the driving experience. Sony recently said that Playstation 5 owners would be able to stream games directly on to the vehicle’s infotainment system.But now, the Afeela has become the latest victim of the auto industry’s EV retrenchment. Even with gas prices soaring and more customers becoming EV curious, automakers are pairing back their model lineups and absorbing huge losses as a result. Some are scrambling to develop more affordable models to compete with an expected flood of cheap Chinese EVs, while others delaying the transition altogether. EV sales continue to climb in Europe and China, but automakers are facing challenges in those countries as well.It’s unclear what will become of Sony and Honda’s joint venture, which said it was continuing to hold discussions regarding its future plans. Honda, in particular, is in a tough spot, with declining US sales and an aging vehicle lineup. Last year, the company’s $60 billion plan to merge with Nissan fell apart amid disagreement about the future merged company’s structure.Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.Andrew J. HawkinsCloseAndrew J. HawkinsTransportation editorPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Andrew J. 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Sony and Honda have discontinued their ambitious Afeela electric vehicle (EV) joint venture, marking a significant setback in the automotive industry’s transition to electric mobility. The decision, announced by Sony Honda Mobility (SHM), reflects a broader recalibration within the EV sector driven by slower-than-anticipated demand and considerable policy uncertainties. The primary catalyst for this action is Honda’s own strategic shift, precipitated by substantial financial losses incurred through its planned EV investments. Honda’s previously announced 2.5 trillion yen ($15.7 billion) writedown, representing the company’s first annual loss in over seventy years, underscored the precarious financial situation of the venture and necessitated a rapid reassessment of its operations.

The Afeela 1 sedan and the corresponding Afeela SUV concept, initially slated for production and release, are now being discontinued. The joint venture, established in September 2022, had aimed to leverage Sony’s technological prowess, particularly in infotainment and sensor technology, alongside Honda’s automotive engineering capabilities to develop a premium, high-value EV offering. The project began with the Vision-S concept unveiled at the 2020 Consumer Electronics Show (CES), and subsequent development involved trial production at Honda’s East Liberty Auto Plant in Ohio and further demonstrations at CES 2026.

However, the Afeela’s technological focus leaned heavily towards a multimedia-centric driving experience, incorporating features like a wide infotainment screen, 40 sensors for advanced driver-assistance systems (ADAS), and hinting at augmented reality integration. Sony’s planned integration with PlayStation 5 (PS5) gaming, allowing streaming directly into the vehicle’s infotainment system, highlighted this distinct approach. Despite these technological innovations, the Afeela struggled to establish itself within a rapidly evolving EV market characterized by intense competition and changing consumer preferences.

The decision to halt the project aligns with a broader trend of automakers reassessing their EV strategies. Several companies are reducing model lineups, absorbing significant losses, and focusing on more affordable EV models to counter the anticipated influx of cheaper vehicles, particularly those originating from China. Furthermore, the continued challenges in key markets like Europe and China, where EV sales are robust, indicate that the transition to electric mobility is not occurring uniformly or at the pace initially projected. Honda's prior attempts to merge with Nissan, which ultimately failed due to structural disagreements, further compounded the difficulties facing the Afeela venture.

SHM plans to refund customers who had placed deposits to reserve an Afeela vehicle, indicating a commitment to fulfilling existing commitments despite the overall strategic shift. The future of the joint venture itself remains uncertain, with SHM continuing to explore potential pathways forward, although the core objectives outlined at its inception – the development and sale of high-value mobility products – appear increasingly challenging to achieve within the current market landscape. The company's ultimate strategy, and the potential for any remaining collaborations with Honda, will undoubtedly depend on the evolution of the broader automotive industry and the continued shift towards electric vehicles.