(Credit: Eric Zeman/PCMag)
Sony Honda Mobility (SHM) has cancelled its Afeela EVs, just months after unveiling the final version of the Afeela 1 and a prototype SUV at CES 2026.
The decision comes after Honda recently announced it would drop three models planned for the US market. The Sony-Honda joint venture was set to borrow Honda’s technology from those cars—Honda 0, 0 Saloon, and Acura RSX—to develop its own Afeela models.
With those programs now scrapped, "SHM has determined that it does not have a viable path forward to bring the [Afeela] Models to market as originally planned," the two companies said.
Honda blames declining profits on the US government's tariff policies and rising competition in Asia. The US government also killed its $7,500 EV tax credits last year.
Sony first showed off its Vision-S concept car at CES 2020. Two years later, it formed a joint venture with Honda, SHM, and unveiled an Afeela prototype at CES 2023. We heard about it again over the next few years, but CES 2026 was the closest Afeela 1 came to production and launch.
The idea was that the cars would eventually be able to drive themselves, allowing passengers to relax with content from Sony, such as games, movies, and even AR-like experiences.
Sony said earlier this year that it would produce the model at a Honda facility in Ohio and begin serving customers in California by the fourth quarter. The starting price was set at $89,900. It has now promised to issue full refunds to those who paid a reservation fee. Sony and Honda also said they will reconsider their "future business plans."
In October 2023, Honda and GM agreed to scrap plans to co-develop a line of sub-$30,000 EVs due to battery costs.