Electric car project developed by two world-famous brands halted

The luxury electric vehicle initiative launched by Sony Honda Mobility, which was being closely watched by the automotive and technology worlds, has been suspended due to uncertainties in the sector and increasing investment risks. The Afeela models, which the partnership had been developing and aimed to put on sale this year, have been shelved ahead of the planned schedule.

Production of the Afeela brand, created through a joint venture between Japanese automotive giant Honda and technology giant Sony, has been completely halted, including the sedan model "Afeela 1" and the SUV project that was under development. The companies have announced that none of these vehicles will be brought to market.

Recent financial disclosures made by Honda formed the main reason behind the decision. After sharing with the public an expected loss of approximately 15.7 billion dollars (approximately 2.5 trillion yen) linked to electric vehicle projects, Honda made a radical change to its electric car strategy. In addition to Afeela, some models such as the new generation platforms called "0 Series" and the Acura RSX were also removed from the future production program.

The Afeela 1, introduced at the CES 2026 fair held in January, had attracted the attention of car and technology enthusiasts with its price tag of approximately 90 thousand dollars and some features controlled by the innovative PlayStation DualSense. Showrooms had even been opened in the US state of California as part of the project, and pre-orders had begun to be taken. However, despite all this preparation and interest, Afeela's transition to mass production was not possible.

Fluctuations in the global electric vehicle market and the challenging competitive environment for technology companies in the automotive sector mean high costs and risks for new players. It is assessed that Sony and Honda were also forced to end the project under the influence of this wave.

News Source: 12punto