Sony and Honda Abandon Their Electric Car Project
Jakarta (ANTARA) - Sony Honda Mobility (SHM), a joint venture formed by two Japanese conglomerates, has decided to abandon its electric car brand named Afeela after several years of development.
This decision was made after Honda announced in early March 2026 that it was undertaking a major overhaul and cancelling three electric vehicles planned for the US market.
According to TechCrunch, on Wednesday (25/3) local time, the decision is estimated to cost Honda nearly $16 billion.
One of the reasons for Honda’s abandonment of the electric vehicles is the emergence of reciprocal tariffs imposed by US President Donald Trump.
Additionally, the increasing competition in electric cars with vehicles from China has also been a contributing factor.
Sony Honda Mobility stated on Wednesday that they plan to use “certain technology and assets” from Honda to create and support the Afeela sedan and SUV.
However, the Japanese carmaker’s strategic shift has left the joint venture in a position where they can no longer develop the vehicles.
The Afeela 1 sedan was supposed to be launched at the end of this year with a fantastically high starting price of around $90,000 (approximately Rp1.5 billion).
There is no clarity yet on the future of the joint venture or the fate of the hundreds of employees working under the brand in Tokyo and California.
Sony Honda Mobility (SHM) stated in a press release on Wednesday that they will “continue to discuss and evaluate the future” of the joint venture with Sony and Honda.
The involved parties have promised to “jointly announce the future direction of SHM, its mid- to long-term position, and contributions to the future of mobility as soon as possible.”
The world first learned of Sony’s interest in introducing a car product at the Consumer Electronics Show 2020.
At that time, the electronics giant showcased a concept vehicle named Vision-S at the end of its main presentation.
Initially, Vision-S appeared to be intended as a showcase of Sony’s prowess in entertainment and electronics.
The car featured a dashboard-spanning screen, 360-degree audio, screens for rear passengers, and a series of 33 sensors around the vehicle.
“This prototype embodies our contribution to the future of mobility,” said Sony’s CEO at the time, Kenichiro Yoshida, during the event.
Vision-S was also reportedly a functional vehicle, built on a platform provided by major automotive supplier Magna.
It was never entirely clear whether Sony initially intended to develop an actual vehicle.
But in 2022, they announced a partnership with Honda and promised to build a sedan and SUV variant. In 2023, the two companies launched the Afeela brand.
The US electric vehicle (EV) market has changed dramatically since then, triggered by tariffs and the Trump administration’s withdrawal of policies encouraging EV adoption. Many EV-only startups have gone bankrupt.