Honda and Sony pull the plug on Afeela EV

Cooling EV market in the US, scrapped EV tax credit, and cancelled Honda EVs prompt the end of the Sony Honda Mobility’s Afeela EV.

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Ash

March 26, 2026

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2 mins read

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Ash
Ash

26 March, 2026

Access Time

2 mins read

In a surprising turn, Sony and Honda have officially axed the Afeela 1 electric sedan, a car that was just months away from rolling off the production line. A planned SUV sibling, slated for 2028, was also cancelled.

The joint venture between two of the world’s most recognisable brands has hit a wall, and the fallout raises questions about the future of EVs in a rapidly shifting market, especially in the US.

What’s been cancelled and why

The axe has fallen on the all-electric Afeela 1 sedan, which was due to begin production this year, and its SUV sibling, previously planned for 2028 (revealed at CES 2026). This follows Honda’s earlier move to cancel the Honda 0 Saloon, Honda 0 SUV, and Acura RSX.

Sony and Honda, in a joint statement, mentioned that these cancellations have fundamentally altered the business model of their joint venture. The Afeela 1 sedan was set to be built at Honda’s East Liberty plant in Ohio, US, which is located just 13km from the Marysville factory, which was also earmarked for Honda’s now-cancelled EV lineup.

Why it happened

The axing decision came due to a cooling EV market in the US, the end of the US$7,500 federal EV tax credit in September 2025, and Honda pulling back on key EV programs in Ohio. Both companies admitted that losing access to shared Honda technologies and assets disrupted the original plan behind the Afeela brand.

What the Afeela 1 EV was set to offer

The now-cancelled ‘Afeela 1 Signature’ was shaping up as a high-end electric sedan with the following highlights.

SpecAfeela 1 Signature EV (Cancelled)
Power360kW dual-motor AWD
Battery91kWh lithium-ion
Range483km (EPA)
DC fast charging150kW
Length4915mm

Pricing: A tough sell

The Afeela 1 was positioned firmly in the premium EV space with a starting price of US$89,900 (or AU$129,000) and Signature variant priced at US$102,900 (or AU$148,220). The car was expensive and would have faced strong competition if it had been launched. 

Also read: Refreshed and electrified 2026 Honda CR-V range detailed

What happens to Sony Honda Mobility?

The joint venture Sony Honda Mobility, responsible for Afeela, is not shutting down yet. The companies will review their future direction, and a new mid to long-term strategy will be announced soon. However, if it continues, it may need to shift focus toward China or rethink its EV-only approach.

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