In a significant shift for Japan’s emerging electric mobility ambitions, Sony Group Corporation and Honda Motor Co., Ltd. have announced a strategic reset of their joint venture, Sony Honda Mobility Inc. (SHM), following the cancellation of its planned electric vehicle lineup.
The announcement, made on April 21, 2026, confirms that both companies have agreed to scale down SHM’s operations after reassessing its ability to deliver products aligned with its original vision in the near term. This decision comes shortly after Honda revised its broader electrification strategy earlier in March.
As part of the restructuring, development and launch plans for the much-anticipated AFEELA models—including the flagship AFEELA 1—have been discontinued. The move reflects growing challenges in aligning product development with evolving market conditions and technological demands in the electric vehicle sector.
According to the joint statement, Sony, Honda, and SHM concluded that under the current framework, it would be difficult to bring competitive mobility products and services to market in the short to medium term. As a result, the companies will review SHM’s organizational structure and reduce its operational scale. Employees of the venture are expected to be reassigned to their parent organizations or related entities, based on individual preferences.
Founded in September 2022, Sony Honda Mobility was envisioned as a next-generation mobility company combining Honda’s automotive engineering expertise with Sony’s strengths in software, sensors, and entertainment technologies. The AFEELA brand was introduced as a symbol of this fusion, aiming to redefine the in-car experience through advanced connectivity and user-centric design.
Despite the setback, both companies reiterated their commitment to the long-term evolution of mobility. They emphasized ongoing collaboration in areas such as software development and advanced driver assistance systems (ADAS), which are expected to play a central role in future transportation.
Looking ahead, Sony and Honda plan to continue discussions on potential new forms of partnership that can better respond to shifting industry dynamics. Their focus remains on delivering innovative user experiences, particularly as the automotive sector transitions toward software-defined vehicles and increasingly autonomous driving capabilities.
The scaling down of SHM underscores the challenges even major global players face in navigating the fast-changing electric vehicle landscape, where technological complexity, high costs, and intense competition continue to reshape strategies.
