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Sony Honda Mobility reportedly cancels AFEELA electric vehicle development amid Honda strategic review
Wednesday, March 25, 2026 at 02:40 PM
Sony Honda Mobility has reportedly cancelled the development of its AFEELA electric vehicle following a strategic review by Honda. This move signals a significant shift in the joint venture's roadmap for automotive technology and integrated hardware-software systems.
Context
On March 25, 2026, Sony Honda Mobility (SHM) officially announced the discontinuation of its AFEELA electric vehicle project, including the flagship AFEELA 1 and a planned second model. The decision follows a massive strategic overhaul by Honda, which recently reported its first annual loss in nearly 70 years after a 2.5 trillion yen ($15.7 billion) writedown on its EV operations. As Honda cancels multiple U.S.-bound models due to cooling demand and shifting political landscapes, the joint venture found its path to market no longer viable without the originally promised technical assets.
This cancellation marks a significant retreat for Sony, which had positioned AFEELA as a high-tech "mobile entertainment space" powered by Qualcomm’s Snapdragon Digital Chassis and Microsoft Azure AI. Despite conducting 24,000 in-vehicle demonstrations and reaching trial production phases in late 2025, the project fell victim to the broader industry retrenchment. SHM has confirmed it will issue full refunds for all reservation fees as the partners re-evaluate their future collaboration in the mobility sector.
Sources (6)
Sony-Honda JV scraps Afeela EV plans after Honda strategy overhaul | ReutersHonda is killing its EVs — and any chance of competing in the future | TechCrunchSony and Honda discontinue Afeela EV joint venture | The VergeSony And Honda's Afeela EVs Are DeadNews | AFEELAAFEELA - Creating the next era of in-car experience with SHM
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