Sony Honda Mobility announced the discontinuation of its Afeela electric vehicle lineup, which included the Afeela 1 sedan and a planned SUV. The decision follows Honda’s March 12, 2026 strategy overhaul that re‑assessed the company’s electrification roadmap and led to an anticipated write‑down of up to $15.7 billion (¥2.5 trillion).
The joint venture had positioned the Afeela as a cross‑platform product that blended Sony’s automotive expertise with its entertainment IP, highlighted by the Afeela 1’s debut at CES 2025, its inclusion in Gran Turismo 7, and the opening of the Afeela Studio and Delivery Hub in Torrance, California, on March 16, 2026. Trial production runs of the Afeela 1 had already begun at Honda’s East Liberty Auto Plant in Ohio, underscoring the project’s advanced development stage before the cancellation.
Sony’s share of Sony Honda Mobility’s operating losses more than doubled from the previous year to 52 billion yen, and the company expects the discontinuation to have no material impact on its consolidated results for the fiscal years ending March 2026 and 2027. Honda, meanwhile, anticipates the write‑down to push it toward its first annual net loss in decades, reflecting the scale of the strategic shift away from U.S. electric‑vehicle production.
The cancellation signals a retreat from the U.S. electric‑vehicle market for Sony, which had hoped to leverage its sensor technology and PlayStation brand to capture a niche segment. It also marks a significant setback for Sony’s broader diversification strategy, which has sought to combine entertainment IP with new technology platforms. The joint venture will continue to evaluate its future direction, but the loss of the Afeela line removes a potential high‑margin revenue source and underscores the challenges of entering the highly competitive EV market.
The decision reflects broader industry pressures, including rising tariffs, uncertain U.S. EV incentives, and intensified competition from Chinese manufacturers. Honda’s strategy overhaul also cited declining EV demand in the U.S., the profitability impact of gasoline and hybrid vehicle sales, and the need to realign its product portfolio in response to market headwinds. Sony’s move illustrates the difficulty of translating entertainment assets into successful consumer products outside its core electronics and gaming businesses.
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