Sony Honda Mobility has pulled the plug on Afeela 1 and a second Afeela model that was still in development, leaving the future of the joint venture suddenly looking far less certain.
The company said the decision followed discussions between Sony and Honda after Honda’s March 12 rethink of its EV strategy, which removed access to some of the technologies and assets the project had originally counted on.
Honda’s own chief, Toshihiro Mibe, has already flagged ¥2.5 trillion (RM62.3bil) in EV-related charges hanging over the business — so trimming the Afeela project was hardly a surprise.
A new business plan is due in May. Honda has already cancelled three North America-bound EV models and is bracing for sizeable operating losses for the fiscal year ending in March.
When Sony Honda Mobility was set up in 2022, the pitch sounded convincing enough: Honda would bring vehicle engineering and production, Sony would bring its software, sensors and entertainment know-how. In theory, that gave Afeela a shot at standing out in a crowded premium EV field. In practice, it never made it to market.
Existing Afeela 1 reservation holders in California will receive full refunds.
Sony, Honda and the joint venture said they are reviewing what comes next. Whether that means a slimmer collaboration, a complete rethink or simply a drawn-out unwinding is not yet clear.
What is clear is that one of the more high-profile EV tie-ups of recent years has just hit the wall.
