Sony Group and Honda Motor have decided to stop developing their Afeela electric vehicle, concluding that changes in the electric vehicle market and Honda's reassessment of its electrification strategy have fundamentally changed the assumptions on which Sony Honda Mobility's operations were based, according to Reuters.
An equal-share joint venture founded in 2022, where Honda was responsible for production, was supposed to reimagine the car, turning travel time into an opportunity for entertainment such as anime and video games. In a joint statement, the company said that the technologies and assets expected from Honda have changed so significantly that Sony Honda Mobility will cease development and launch of both its first model, the Afeela 1, and the second model, as well as review the overall direction of the joint venture. Sony said that the company has followed a minimum asset approach and does not expect a significant impact on its financial results. Sony Honda Mobility will refund the funds for the Afeela 1 pre-order in California, where the price of the car started at $89,900. The decision came after Honda cancelled three electric vehicle launches in North America and forecast costs and losses of 2.5 trillion yen, revising its electrification strategy amid slowing global sales of electric vehicles.
For Sony, this project was an important step beyond hardware manufacturing towards creating a platform built around entertainment, services, image sensors, games, user interfaces, and immersive experiences in the car interior, without having to take on the full burden of car manufacturing.
