The Afeela EVs From Sony Honda Joint Venture Have Been Canceled

Sony has a history of big hits and misses: The Japanese entertainment juggernaut that invented the Walkman, compact disc (with Philips), camcorder, and PlayStation also was behind the MiniDisc and Betamax formats. We can add now one to the miss pile, as the Sony Afeela electric vehicles it sought to launch in a joint venture with Honda have been canceled, putting the future of the joint venture in question.

We are not surprised. Even when demand for electric vehicles was strong, the Afeela looked like a hard sell. When EV demand slowed, the likelihood of success narrowed even more. Then Honda announced it was dropping plans for its own EVs because of the losses they represented. Pulling back on its investment in the Sony project was a natural next step.

The announcement was made in Japan. The Afeela 1 sedan was to go on sale later this year in America, followed by an electric crossover. They were to be based on Honda’s 0 Series architecture and built in the U.S. in East Liberty, Ohio.

Honda 0 Saloon concept

Honda Already Killed Its Own EVs

But earlier this month Honda said it was killing plans for its own three EVs that were almost production-ready and were to be built at its retooled Marysville plant in Ohio. The culling includes the first two models on the 0 Series platform, the 0 Series SUV and funky 0 Series sedan, and the Acura RSX. Honda cited financial losses and slowing demand for EVs. Honda said it was shifting its focus to hybrids and planned a massive overhaul of its hybrid lineup with new internal combustion engines, electric hardware, and battery packs.

“As a result of Honda’s reassessment of its automobile electrification strategy announced on March 12, 2026, SHM [Sony Honda Mobility] will not be able to utilize certain technologies and assets that were originally planned to be provided by Honda at the time of SHM’s initial business planning,” the joint venture said in a statement. “In light of this change, SHM has determined that it does not have a viable path forward to bring the models to market as originally planned.”

Honda says the business direction of Sony Honda Mobility will be reviewed. The JV was formed in 2022 to combine the respective technologies of the two Japanese companies.

Consumers were to be able to stream movies and games. Or in this case, movies about games.

Afeela’s Cool Infotainment Screens

The Afeela sedan has been shown at auto shows and in other venues for years. The Vision-S concept bowed at CES in 2020, and we saw the first concept for the SUV in January. The vehicles are notable for their infotainment system that showcased Sony’s gaming and media prowess. Screens stretched the width of a vehicle loaded with cameras and sensors and augmented reality capability. Sony said PlayStation 5 owners could stream games.

Customers who reserved an Afeela will be refunded their $200 deposit. The car had a starting price of just under $90,000. The announcement is just the latest in a period that has seen many automakers scale back EV plans, delaying or canceling programs and taking big financial hits.