3 min learnNew DelhiMar 25, 2026 08:16 PM IST
Sony Honda Mobility, the three way partnership between Japanese electronics big Sony and automaker Honda, stated on Wednesday it will halt growth of its Afeela electrical autos after Honda joined rivals in scaling again its EV ambitions.
Honda stated earlier this month it will take a writedown of as a lot as 2.5 trillion yen ($15.7 billion) because it trims its EV plans, pushing the corporate to its first annual loss in virtually 70 years as a listed agency.
Underneath President Donald Trump, the U.S. has rolled again assist for EVs, whereas demand in Europe has been weaker than anticipated. That has pressured automakers resembling Ford and Stellantis to e-book massive writedowns of their very own.
For Sony, scrapping Afeela makes it the most recent legacy know-how firm to desert an EV venture, highlighting how powerful it’s for brand new entrants to interrupt right into a market dominated by Tesla and fast-moving Chinese language rivals.
Apple shelved its decade-long EV effort greater than two years in the past, whereas Chinese language smartphone maker Xiaomi has bucked the development with its SU7 sedan, launched after greater than a decade centered on shopper electronics.
No path to market
Sony Honda Mobility stated Honda’s resolution left the JV and not using a viable path to convey Afeela fashions to market, because it might now not use applied sciences and belongings anticipated from Japan’s second-biggest automaker.
The enterprise stated it’ll concern full refunds to prospects in California who had reserved the Afeela 1, its deliberate first mannequin, and would proceed discussions with Sony and Honda on subsequent steps.
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Deliveries in California had been anticipated to start late this 12 months, with a second mannequin based mostly on a more recent prototype focused as early as 2028. Orders for the Afeela 1 opened final 12 months, with costs beginning at $89,900.
Travis Lundy of Quiddity Advisors stated shortly earlier than the announcement that the Afeela was “doomed to fail”, calling it a “bizarre vainness venture” unlikely to turn out to be central to Honda’s future.
In a submitting, Honda stated the impression on its up to date full-year consolidated monetary forecasts for the fiscal 12 months ending this month can be immaterial.
Sony additionally stated it didn’t anticipate the discontinuation to have a fabric impact on its monetary place.
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Sony Honda Mobility was created to pair Honda’s engineering and manufacturing with Sony’s software program and gaming capabilities to meet up with EV rivals.