Sony-Honda joint venture collapses; Afeela EV plans scrapped as Honda overhauls strategy

The joint venture between Sony and Honda has frayed, as the Japanese duo confirmed on Friday that they would halt the development of Afeela electric vehicles after the automotive giant scaled back on its EV plans. Earlier this month, Honda had revealed that it would take a write down of as much as 2.5 trillion yen as it trims its EV plans, pushing the company to its first annual loss in almost 70 years as a listed firm.

The rollback of support for EV vehicles comes as demand in Europe has been weaker than expected, the slowdown has forced automakers such as Ford and Stellantis to take large write downs of their own. The EV market is now dominated by Chinese players and the likes of Tesla, who were quick to recognize the need right from the inception of the changes. Afeela was a breakthrough project for Sony; its failure to yield any fruitful results and help diversify the existing portfolio would be an ordeal to succumb to.

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Beyond Sony, the California-based tech giant had abandoned its decade-long EV effort more than a year ago, while Apple and Xiaomi have made profound headway in the dynamic with their SU7 sedan, which was launched after more than a decade focused on consumer electronics.

Sony Honda Mobility said Honda’s decision left the Joint venture without a viable path to bring Afeela models to market, as it could no longer leverage the tech and technical know-how expected from Japan’s second-biggest automaker.

The venture has stated that it would issue full refunds to customers in California who had reserved the Afeela 1. Deliveries were expected to begin late this year, and a second model was supposed to follow soon. The latter would have been based on a newer prototype targeted for as early as 2028. Both brands have released statements detailing how the discontinuation would not impact their financial forecasts for the year.

Afeela 1

The prototype, which was the collaboration between Honda and Sony, sought to make driving an experience that users could connect to. Beyond the saturated lineups of mundane EVs, the venture aimed to bring in a change. Since it was up for reservation, the price included a three-year complimentary subscription. The car was expected to be fitted with 40 sensors, 18 cameras, 1 LiDAR, 9 radars, and 12 ultrasonic sensors, both inside and outside the vehicle. The estimated range of the original Afeela 1 was approximately 300 miles.