Honda and Sony have officially discontinued their Afeela electric vehicle (EV) plans, which included the Afeela 1 sedan and an electric SUV. This decision may come as a shock after Sony first showcased its vision for an electric car at the CES 2020 show. In 2022, the two companies formed a partnership called Sony Honda Mobility (SHM) to bring these concepts to life. However, recent shifts in strategy have led to the cancellation of these ambitious projects.
Earlier this month, Honda announced it would halt production of two EV models and scrap its Acura RSX revival. In a joint statement, Honda and Sony indicated that major adjustments in Honda’s EV strategy significantly impacted their joint venture, necessitating the discontinuation of the Afeela models.
Honda’s reassessment of its electric car approach is timely given the rapid changes in the EV market. According to a recent study by Deloitte, over 75% of automobile executives believe that consumer preferences are moving toward advanced technology and sustainability. This dynamics can even make previous commitments obsolete.
Despite the setbacks, SHM hasn’t entirely dissolved. The companies are set to review their future direction together. In a statement, they promised to outline their long-term vision for mobility soon.
Initially, Afeela was expected to introduce the Signature model priced at $102,900 later this year, followed by the more affordable $89,900 Origin model in 2027. However, pre-production had already begun at Honda’s East Liberty Auto Plant in Ohio. Such a late-stage cancellation raises concerns about SHM’s viability, given that most automakers hesitate to scrap products once they have reached this phase.
Furthermore, Honda is bracing for significant losses—up to $15.8 billion—following the cancellation of several vehicle models. Such drastic measures reflect Honda’s cautious approach as it reevaluates its investments in the growing EV sector.
As the EV landscape continues to evolve, these developments highlight the challenges automakers face in responding to consumer demands and market conditions. The combination of fast-paced technological advancements and preferences for sustainability adds layers of complexity to their strategies.
For more insights on how automakers are adapting to market changes, you can refer to Deloitte’s report on the automotive industry’s future trends.
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