Sony Honda Mobility (SHM), the joint venture between Sony Group Corporation and Honda Motor Co., Ltd., has discontinued development of its first two electric vehicle models under the Afeela brand, citing strategic changes at Honda that affected the project’s viability.
The decision brings an end to plans for the Afeela 1, which had been nearing production, as well as a second model still under development. SHM said it would now reassess the future of the venture and provide further updates “at the earliest possible opportunity.”
“SHM’s decision comes following discussions between its parent companies, Sony Group Corporation (“Sony”) and Honda Motor Co., Ltd. (“Honda”),” the company said in a statement. “However, as a result of Honda’s reassessment of its automobile electrification strategy announced on March 12, 2026, SHM will not be able to utilize certain technologies and assets that were originally planned to be provided by Honda at the time of SHM’s initial business planning. In light of this change, SHM has determined that it does not have a viable path forward to bring the Models to market as originally planned.”
The move follows Honda’s earlier decision to cancel three electric vehicle models intended for the U.S. market under its planned “0 Series,” which were to be built on the new e:Architecture platform. Although Honda did not formally abandon the platform itself, the cancellation of those vehicles undermined the foundation for the Afeela programme, which relied on shared technologies.
Prior to the announcement, SHM had indicated that discussions between the partners were ongoing and had suggested that the Afeela 1 could debut in the near term. The abrupt halt signals a significant shift in the joint venture’s trajectory.
Customers in California who had placed reservations for the Afeela 1—priced at $89,990 and offered in limited availability—will receive full refunds, the company said.
Despite the cancellation, both Sony and Honda emphasized that the partnership remains intact. The companies said they would continue evaluating SHM’s role in the evolving electric vehicle market and outline a revised strategy in due course.
“Sony, Honda and SHM will continue to discuss and evaluate the future of SHM, taking into account the initial purpose of the JV establishment as well as the latest EV market environment,” Honda said, adding that the partners “intend to jointly announce SHM’s future direction, mid to long-term positioning as well as contributions to the future of mobility at the earliest possible opportunity.”
