Sony Honda Mobility Inc. (SHM) has discontinued development of both its AFEELA 1 sedan and a planned second model. The joint venture between Sony Group Corporation and Honda Motor Co. confirmed the decision in a joint statement, citing the collapse of key technology-sharing arrangements following Honda’s broader retreat from EV production in North America.
Highlights
- AFEELA program terminated: SHM has scrapped both the AFEELA 1 and its second-generation model, which had been in active development.
- Honda’s EV pullback triggered the decision: Honda’s March 12 reassessment of its electrification strategy removed technologies and assets SHM had planned to use.
- Joint venture future uncertain: Sony, Honda, and SHM will evaluate the future direction of the partnership but have set no timeline.
- Pre-production was already underway: Trial assembly of the AFEELA 1 had begun at Honda’s East Liberty, Ohio plant before the cancellation.
Honda’s Strategy Shift Upended the Partnership
SHM was established in September 2022 to combine Sony’s entertainment and sensor technologies with Honda’s automotive manufacturing capabilities. The venture aimed to produce premium EVs with advanced software features, including Level 2+ driver assistance powered by 40 onboard sensors and a LiDAR system.
However, Honda announced on March 12, 2026, that it would cancel three North American EV models — the Honda 0 SUV, Honda 0 Saloon, and Acura RSX — as part of a sweeping electrification strategy reassessment. That decision, driven by slowing U.S. EV demand, shifting tariff policies, and intensifying competition from Chinese manufacturers, triggered expected losses of up to ¥2.5 trillion (~$15.7 billion USD).
The AFEELA 1 shared its underlying platform with Honda’s canceled 0 Series vehicles. As a result, SHM lost access to core technologies and production assets that Honda had originally committed to the joint venture.
AFEELA 1 Was Months From Customer Deliveries
The cancellation comes at a late stage. SHM had unveiled the production-ready AFEELA 1 at CES 2025 and opened refundable reservations at $200. The sedan was priced from $89,900 and featured dual 180 kW motors producing 483 horsepower with approximately 300 miles of range.
California deliveries of the AFEELA 1 Signature launch edition had been targeted for late 2026. SHM opened a studio and delivery hub in Torrance, California, as recently as March 16. A second model, an electric SUV concept, was shown at CES 2026.
Joint Venture’s Future Remains Open
Sony and Honda stated they will continue evaluating SHM’s future direction. The companies said they intend to announce a mid- to long-term plan at the earliest opportunity, though no specific timeline was provided.
The statement noted that both parent companies will consider the original purpose of the joint venture alongside current EV market conditions. Whether SHM pivots to a different technology focus or winds down entirely remains unresolved.
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