Sony and Honda Halt $100,000 Afeela EV Launch After $15.7B Writedown
Sony Honda Mobility has scrapped its $100,000 Afeela 1 electric sedan launch in California and will refund $200 reservation fees after Honda’s $15.7 billion EV writedown forced cancellation of three planned models. Honda and Sony are now reviewing the strategic direction of their joint venture, SHM.
1. JV Establishment and Review
Sony Honda Mobility Inc (SHM) was created in September 2022 to combine Sony’s electronics expertise with Honda’s automotive capabilities in BEVs. Following Honda’s global EV program rollback, SHM and its parent companies will reassess the venture’s mid-to-long-term direction and mobility contributions before announcing a revised strategy.
2. Cancellation of Afeela 1 Launch
SHM has discontinued development and launch of the Afeela 1, a $100,000 electric sedan equipped with wraparound screens, 28 speakers, AI assistants, and gaming features. The model, slated for California release, will not proceed as planned, and $200 reservation fees will be refunded to customers.
3. Impact of Honda’s EV Strategy Shift
Honda recorded a $15.7 billion writedown on its EV business, canceled three upcoming BEV models and posted its first annual loss in nearly 70 years. Major automakers like Ford and Stellantis have also taken multibillion-dollar EV writedowns or cut models in response to challenging market conditions.