Sony Honda Mobility has announced a significant shift in its operations, revealing that it will cease development of its Afeela electric vehicles. This decision comes in response to a comprehensive reassessment of Honda’s strategy regarding electric vehicles, a move which included the disclosure of a potential writedown amounting to 2.5 trillion yen (approximately $15.7 billion) earlier this month.
In a statement, the joint venture indicated that the reassessment by Honda effectively left it with no viable path to launch the Afeela models. As part of this decision, Sony Honda Mobility confirmed that it would issue full refunds to customers who had already placed reservations for its inaugural model, the Afeela 1, which had been anticipated for release in California this year.
Previously, the Afeela 1 was expected to start deliveries in late 2023, with the company also planning to unveil a second model rooted in a newer prototype by 2028. Starting from last year, the Afeela 1 garnered attention with a price tag of $89,900.
In light of the joint venture’s recent developments, Honda stated that it does not foresee any significant impact on its updated consolidated financial forecasts for the fiscal year ending this month. Sony echoed this sentiment, indicating that the discontinuation of the Afeela project would not materially affect its financial situation.
The venture aimed to leverage Honda’s established expertise in vehicle engineering and manufacturing, combined with Sony’s technological strengths in software and gaming, in an effort to position itself against formidable competitors in the growing EV market. As of now, discussions between Sony and Honda regarding the future of the joint venture will continue, though the immediate prospect for the Afeela line of vehicles has now been effectively halted.
