Automakers are rapidly reshaping their electric vehicle strategies as competition intensifies and development costs continue to rise. Partnerships that once seemed essential are now being reevaluated as brands look to streamline their approach and maintain control over future products. In a significant move, Honda has decided to step away from one of its most high-profile collaborations in the EV space.
The partnership between Honda and Sony was expected to deliver a new generation of electric vehicles that blended automotive engineering with advanced consumer technology. However, shifting priorities and changing market conditions have led Honda to reconsider its involvement, signaling a broader adjustment in how the company plans to approach electrification moving forward.
For the industry, the decision highlights how fluid the EV landscape has become. Automakers are no longer just racing to go electric, they’re refining how they get there, and Honda’s move suggests that flexibility may be just as important as innovation in the next phase of the transition.
In order to give you the most up-to-date and accurate information possible, the data used to compile this article was sourced from various manufacturer websites, including the Reuters.
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Honda and Sony’s Afeela 1 sedan has been canceled
One of the most anticipated EVs is dead before it hits the market
Credit: AFEELA
Honda and Sony joined forces quite some time ago, forming Sony Honda Mobility. A ton of different tech brands have been trying to enter the automotive space, but Sony’s partnership with Honda gave it a credibility that some of its rivals didn’t have. Unfortunately, the instability in the EV market has killed a number of upcoming cars, with the venture’s Afeela brand being the latest on the chopping block.
Not all that big of a surprise
Credit: AFEELA
We first saw the Afeela 1 sedan all the way back at CES 2023 in prototype form. Two years later, Sony Honda Mobility showcased the production version at CES 2025. It was meant to be the first step into a new age of advanced driver assistance, with a powerful onboard computer that would be capable of taking self-driving capabilities to the next level. At CES 2026, a SUV variant was also showcased.
While the Afeela was a cool car from a technological point of view, it felt a little out of touch. Its styling was exceptionally reserved, and its spec sheet definitely didn’t impress. It made a reasonable 400 horsepower and had a range of around 300 miles, but came with a staggering price tag woefully close to the six-figure mark. Advanced self-driving still feels like a gimmick, and buyers aren’t willing to pay that kind of premium for a gimmick.
There could still be a future for the partnership
You might be reading this and assume that the death of the Afeela surely means that Sony and Honda will part ways, but both companies have said that they are in discussions to assess the future of the venture. Despite the (hardly) reassuring words, the fact that full refunds will have to be issued to those that reserved Afeelas, meaning we don’t see a world where the duo will produce anything together, at least for the foreseeable future.
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Given the state of Honda’s other planned EVs, Afeela’s death isn’t a surprise
Honda has done a 180 on their EV plans
Those in the know will have already seen this coming. The Afeela obviously relied very heavily on Honda’s ability to provide a lot of components. Earlier this month, the Japanese automaker announced that they would be scaling back its EV plans, canceling three upcoming electric vehicles built on brand-new platforms. It wasn’t a leap to assume that this left Afeela dead in the water.
Weak demand has left Honda in shambles
Like many other automakers, Honda made projections regarding EV demand that just didn’t materialize. The Japanese brand will fall to its first annual loss in 70 years as a listed company this year, in no small part thanks to over $15 billion in restructuring costs. It is in the wake of this that the brand canceled three new EVs that were meant to be built in America at a factory in Ohio.
Sony Honda Mobility’s Afeela EV was also supposed to be built at this factory in Ohio. When the news broke that Honda was canceling its EV plans, the team behind the Afeela claimed that things were operating as usual. Now, they have said that there were certain technologies and assets that Honda was going to supply that it no longer can, thus spelling doom for the joint-venture EV.
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Honda isn’t the only brand rethinking their future EV plans
Demand for electric vehicles has been much lower than expected
Ford
A couple of years ago, it felt like half of the automotive industry was making promises to go fully electric by 2030. In the wake of policy changes, an intense amount of competition, high development costs, and a general downtick in sentiment for EVs, there has been a wake of automakers rethinking their strategy. Honda may be the latest to change direction, but they weren’t the first and they won’t be the last.
A number of top players have pumped the brakes
Credit: Bertel King / How-To Geek
In hindsight, the cyclical nature of tech enthusiasm should have been something that more automakers predicted. The dot-com bust in the 2000s is the perfect example. Something they couldn’t have predicted, however, is the federal government axing EV incentives, which were definitely a big driving factor for sales in the United States. Whatever the reason, demand simply isn’t where automakers thought it would be.
Automakers haven’t pulled a complete 180, though. What they have done is slowed things down a bit. Timelines have been pushed back, and they have reduced their electric lineups to more limited models. This includes a ton of brands, like Ford, Hyundai, Kia, Afla Romeo, and now Honda. Even Tesla has slowed the production of its cars down, though this is to make space for the production of their humanoid robots.
Some brands should feel a little smug right now
Top-down shot of the 2025 Toyota bZ ConceptCredit: Toyota
There are a number of brands who did predict that people weren’t quite ready for the mass adoption of EVs. One automaker that has been quite vocal about this is Toyota. While they do offer an electric vehicle, and there are more on the way, they were the first to say that hybrids are the cars of today and EVs are the cars of tomorrow. Clearly, this strategy is starting to pay off big time.
The world wasn’t ready for the Afeela
Electric cars are already a difficult sell. Granted, automakers have been doing a good job of selling them thus far. They require you to completely change the way you think of your vehicle, and that isn’t something that everyone is willing to do. An EV with mediocre power and range specifications with a price of near $100,000 was never going to perform particularly well. Its main selling point was also an AI-powered advanced driver assist system, another technology under heavy scrutiny right now. Even if Honda didn’t shut things down, we think the Afeela would have had an uphill battle.
