As has been expected since Honda announced its pullback from the EV market, the joint venture company of Sony Honda Mobility is pulling the plug on its Afeela electric vehicle program, marking the end of one of the auto industry's more interesting tech-automaker partnerships.The decision follows Honda's recent announcement that it expects to take a write-down of up to 2.5 trillion yen (about $15.7 billion) as it ramps down EV spending, a move that will push the company to its first annual loss in nearly 70 years as a public company.The joint venture had positioned Afeela as a high-tech, software-driven EV brand that combined the best of Honda's manufacturing expertise with Sony's strengths in gaming and entertainment. The first model, the Afeela 1, was slated to begin deliveries in California later this year, with pricing starting at $89,900. A second model had been planned for later in the decade.With Honda stepping back from aggressive EV expansion, the joint venture said it no longer had a viable path to production. It will now issue full refunds to customers who had placed reservations for the Afeela 1.ces 26 afeela 1.JPGThe move highlights the challenges facing new entrants in the increasingly competitive EV market. While established automakers such as Ford and Stellantis have also scaled back EV investments due to sagging demand and constantly shifting government policies, tech companies have struggled even more to break into the market. Apple abandoned its long-running EV project in 2024, while only a handful of nontraditional players, like China's Xiaomi, have managed to bring vehicles to market.Sony Honda Mobility said it will continue discussions with both parent companies on potential future initiatives but indicated no plans to revive the Afeela program.Autoweek SOC EV Newsletter sign up
