Sony and Honda have abruptly ended their joint electric vehicle project, a decision that comes as a surprise given how recently things seemed to be moving forward. Sony Honda Mobility (SHM) confirmed that it is discontinuing the development and production of the Afeela 1 and Afeela 2 models, citing a strategic review and changing market conditions in its official statement.
“As a result of Honda’s revised electrification strategy announced on March 12, 2026, and in light of changes in the EV market, the underlying assumptions of SHM, such as the use of certain technologies and assets planned to be provided by Honda, have undergone fundamental changes. As a result, SHM today announced the discontinuation of the development and launch of its first model, the Afeela 1, as well as its second model. At the same time, Sony, Honda, and SHM have decided to reassess SHM’s direction.
Sony’s official statement”
The Afeela project had been in development since 2020. It was imagined as a blend of Honda’s automotive expertise and Sony’s digital innovation—a car that felt more like a connected device than just a machine. But over time, the market has shifted. The electric vehicle space has grown more crowded, and what once felt like a bold “smartphone on wheels” idea no longer stands out in the same way.
What makes the decision feel even more unexpected is its timing. In early January, the companies showcased a prototype of the Afeela electric crossover at CES 2026, giving the impression that the project was still very much on track. At that point, deliveries of the Afeela 1 were planned for late 2026.
Now, with development halted, the future of the joint venture feels uncertain. Whether this is a pause for rethinking or the quiet end of a partnership is something that remains to be seen.
