Sony Honda Mobility, the joint venture between Japanese tech giant Sony and automaker Honda, announced it will discontinue the $90,000 Afeela 1 electric sedan and its conceptual Afeela SUV. The partnership, launched in 2022 with high hopes to enter the competitive EV market, has been derailed by Honda’s sharp change in electrification strategy and challenging U.S. market conditions.
The joint venture revealed that Honda’s recent decision to pull back on electric vehicle development means SHM can no longer leverage key technologies and assets Honda was originally set to provide. Honda itself confirmed that it will halt production of multiple planned EV models, including the Honda 0 SUV, Honda 0 Saloon, and Acura RSX, citing weak U.S. demand and shifting regulatory landscapes as central factors.
Honda’s official explanation points to declining interest in EVs within the U.S., compounded by regulatory rollbacks initiated during the Trump administration. These changes have eliminated EV tax credits and infrastructure support, forcing automakers to reassess investments in zero-emission models. Meanwhile, China has solidified its dominance by controlling around 70% of global EV manufacturing, backed by persistent government subsidies and long-term policies.
The withdrawal from these ambitious models highlights the volatility of the EV sector outside China, where policy support and market demand have not aligned strongly enough. Sony and Honda’s venture, though promising, could not withstand this external pressure-underscoring how geopolitical and regulatory shifts remain decisive forces in EV development.