When Honda announced earlier this month that it was scrapping its plans to build three EVs on a new platform in the United States, the writing seemed to be on the wall for Afeela. The Sony-Honda joint venture had intended to build an electric sedan at Honda's Ohio factory, and initially maintained it was "operating as usual." That position has now changed: Sony Honda Mobility has confirmed that development and production of the Afeela 1 has been cancelled.

Sony Honda Mobility had also unveiled a second model at CES 2026 — an SUV that was essentially an elevated version of the electric sedan, with a planned launch in 2028. The company's official statement confirms that development of this model has also been halted.

Sony Honda Mobility attributed the decision to discontinue both vehicles to discussions between its two parent companies. The statement explained that Honda's retreat from its EV commitments means Afeela will no longer have access to "certain technologies and assets that were originally planned to be provided by Honda," and that as a result, Sony Honda Mobility "determined that it does not have a viable path forward to bring the Models to market as originally planned."
The Afeela 1 was unveiled in concept form at CES 2023, with the production-specification version shown at CES 2025 in advance of a mid-2026 manufacturing launch. Despite carrying the combined weight of two technology giants, the car's specifications were underwhelming. The Honda-sourced dual-motor powertrain offered more than 400 horsepower — decent but not exceptional — while the estimated range of roughly 300 miles was a middling figure that looked particularly unimpressive alongside a starting price of $89,900 for the base Origin trim and $102,900 for the Signature.

The Afeela 1's styling didn't help matters either — it looked like it could have been rendered for a gaming background rather than a showroom. Sony Honda Mobility leaned heavily on the car's sophisticated driver-assistance technology and processing power as its core selling points, but it's unclear whether those features would have overcome the combination of forgettable aesthetics and unexciting performance numbers.
While this development appears to mark the end of the road for the venture, Sony Honda Mobility said it "will continue discussions with Sony and Honda regarding its future business plans." In the meantime, the company will issue full refunds to anyone who had placed a reservation deposit for an Afeela 1 — which strongly suggests that the joint venture is unlikely to bring any product to market in the near future, if at all.