Sony Group Corporation and Honda Motor Co., Ltd. have announced a strategic review of their joint venture Sony Honda Mobility Inc. (SHM), including the discontinuation of development and launch plans for its first electric vehicle model, AFEELA 1, along with a planned second model.
The decision follows a reassessment of Honda’s automobile electrification strategy announced earlier in March 2026, as well as evolving dynamics in the global electric vehicle (EV) market. According to the joint statement, these changes significantly altered key assumptions underlying SHM’s operations, particularly regarding the use of certain technologies and assets originally planned to be supplied by Honda.
Sony Honda Mobility was established in September 2022 to combine Sony’s strengths in electronics, entertainment, and software technologies with Honda’s expertise in automotive engineering and mobility development. The partnership aimed to create high value-added electric vehicles and offer advanced mobility services, integrating digital technologies with next-generation automotive platforms.
However, with Honda’s revised electrification roadmap and shifting EV market conditions, the companies said continuing development of the AFEELA vehicle program under the existing structure had become impractical. As a result, SHM has decided to discontinue the planned launch of the AFEELA 1 and a follow-up model.
Despite the cancellation of these initial vehicle projects, Sony, Honda, and SHM emphasized that discussions regarding the future of the joint venture are ongoing. The partners are currently evaluating the venture’s long-term direction while considering its original purpose and the rapidly changing mobility landscape.
The companies said they intend to announce the future positioning and strategic direction of Sony Honda Mobility as soon as possible, including its potential contributions to next-generation mobility technologies.
The review reflects the broader challenges facing the global EV sector, where automakers are increasingly reassessing investment strategies due to changing demand patterns, technological shifts, and evolving regulatory frameworks.
Both Sony and Honda reaffirmed their commitment to exploring opportunities for innovation in mobility and digital technologies. The companies noted that the collaboration was initially designed to redefine the future of mobility by integrating software-driven experiences, advanced sensors, connectivity, and entertainment technologies into electric vehicles.
