Sony Honda Mobility is pulling the plug on its Afeela electric vehicle program, just days after celebrating the opening of its first showroom and delivery hub in Southern California.
The decision comes in the wake of Honda’s reassessment of its electrification strategy, which saw the Japanese automaker preemptively kill three EVs scheduled for release in North America.
Earlier this month, Honda revealed it expects to take a massive $15.7 billion write-down tied to scaling back those EV plans.
Without Honda’s full backing, Sony Honda Mobility concedes it no longer has a viable path to bring Afeela vehicles to market, effectively ending the project before customer deliveries could begin.
The venture had been preparing to launch its first model, the Afeela 1, in California later this year, with a starting price around $89,900.
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Reservations had already opened, but the company now says customers will receive full refunds.
A second model, based on a newer prototype SUV, was shown earlier this year and had been tentatively planned for a 2028 release.
The Afeela 1 was expected to carry a dual-motor powertrain with 483 horsepower and a 91 kWh battery pack, delivering an estimated 300 miles of range.
The base model was priced at $89,900, while the flagship Signature trim would have cost $102,900.
Just three days ago, the City of Torrance celebrated the grand opening and ribbon-cutting of the first Sony Honda Mobility showroom and delivery hub in Southern California.
Sony Honda Mobility was originally created to combine Honda’s manufacturing and engineering capabilities with Sony’s strengths in software, entertainment, and user experience.
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The Afeela 1 was positioned to compete against the Lucid Air and Tesla Model S, but its ambitious price tag and the pedigree of its parent brands may not have been enough to overcome its limitations.
According to the report, customers who had already made reservations for the Afeela 1 will receive full refunds.
They will continue discussions between Sony and Honda regarding future collaboration, though there are no specific next steps.
As the automotive industry continues to evolve and shift towards electrification, it will be interesting to see how Sony and Honda choose to proceed.
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