Have they got it wrong? Just as EV sales boom, Sony and Honda abandon plans to build electric cars together

As EV sales boom because of the oil price spike, Sony has declared it has scrapped its plans to go into the car business, with the consumer electronics giant confirming its proposed Afeela family of electric cars will now never see the light of day.

Originally, the first Afeela 1 EV was locked in to launch later this year, with a second model – a mid-sized SUV – supposed to follow shortly after.

It’s thought Sony’s decision to cancel its electric car programme is linked to Honda pulling the plug on its own 0 Series sedan and SUV that are thought to share much with the Afeela.

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Sony announced it was developing a car back in January 2020 at the Consumer Electronics Show in Las Vegas before confirming it had entered a joint venture with Honda in March 2022.

Behind the scenes, the partnership, dubbed Sony Honda Mobility, then developed and engineered the Afeela all the way to a production-ready model.

Said to be capable of Level 3 (hands-off the wheel and eyes-off the road) autonomous driving, first deliveries of the Afeela 1 were supposed to commence in mid-2026.

Beneath the skin, the Afeela is thought to have been based on the same 0 Series platform, while the sedan was primed to come with front and rear-mounted e-motors that produced 180kW each.

A 91kWh lithium-ion battery that could only be charged at up to 150kW was a drawback.

Rumours suggested that with a double-wishbone suspension up front and a multi-link set-up at the rear (plus air springs) had been developed for a class-best ride and drive.

Within, thanks to Sony’s involvement, the Afeela was supposed to introduce a game-changing digital experience when it came to both functionality and onboard entertainment.

While the sleek 2027 Afeela 1 sedan was set to cost around US$90,000 ($135,000), the second SUV was thought to have been priced around US$100,000 ($145,000).

Production was originally planned to begin early this year at Honda’s East Liberty Plant in Ohio, in the US.

Attributing a large proportion of blame to Honda, Sony released a statement that said:

“As a result of Honda’s reassessment of its automobile electrification strategy announced on March 12, 2026, SHM will not be able to utilise certain technologies and assets that were originally planned to be provided by Honda at the time of SHM’s initial business planning.

“SHM has determined that it does not have a viable path forward to bring the models to market as originally planned.”

Honda’s decision to cull its own flagship 0 Series of EVs was said to be linked to both the strength and low price of Chinese EVs, plus falling demand for electric cars in both the US and the rest of Asia.

At the time Honda said: “In such a difficult competitive environment, Honda was unable to deliver products that offer value for money better than that of newer EV manufacturers, resulting in a decline in competitiveness.”

With right-hand drive production already confirmed for Japan, there was a chance the Afeela could have made it to other right-hand drive markets like the UK and Australia.