Sony Stops Afeela EV Projects, Eyes $1B Sale of TV Unit to TCL
Sony Honda Mobility is discontinuing its Afeela 1 model and a second electric vehicle project following Honda’s EV strategy overhaul. Sony is advancing toward a binding deal to sell a 51% stake in its home entertainment business to TCL for about $1 billion, with operations slated for April 2027.
1. Cancellation of Afeela EV Program
Sony Honda Mobility has halted development of its Afeela 1 sedan and a second SUV project after Honda reassessed its electric-vehicle roadmap. The decision terminates joint R&D investments and shifts both companies away from planned mass-market EV launches under the Afeela brand.
2. Nearing $1 B TCL Home Entertainment Deal
Sony is in advanced negotiations to sell a 51% majority stake in its home entertainment division, including Bravia television operations, to TCL for roughly $1 billion. The agreement would form a joint venture effective April 2027, with TCL handling manufacturing and Sony retaining brand and ecosystem roles.
3. Strategic Implications for Sony
The EV JV cancellation and TCL divestment reflect Sony’s shift toward higher-margin content and intellectual property segments over traditional hardware. The combined moves could free up capital for film, music and gaming investments while reducing exposure to low-margin electronics manufacturing.