Sony Honda Mobility reported a ¥52 billion ($362 million) operating loss for the fiscal year ending in March, more than double the prior year’s deficit (¥20.5 billion), as the joint venture moves closer to launching its first electric vehicle, the Afeela.
The financial results, disclosed Monday, reflect the mounting costs of developing and bringing the high-end EV to market. With a starting price of $89,000, the Afeela is scheduled to go on sale later this year. Additionally, the company has yet to record any revenue, as it has not yet begun delivering vehicles.
Sony and Honda established the partnership in 2022 with the goal of targeting the premium EV segment by leveraging Honda’s automotive engineering and production expertise alongside Sony’s strengths in sensors, software, and entertainment. The Afeela represents their first product in a competitive and capital-intensive market dominated by brands like Tesla and Mercedes-Benz.
Further, the Afeela will enter a competitive market dominated by established players, where high research, development, and prototype costs, along with limited luxury vehicle volumes, make achieving early profitability challenging. Analysts note that while pricing may help recoup some costs, it is unlikely to offset the scale of upfront investment.
However, Sony and Honda’s broader financial positions remain solid, with the two companies posting more than ¥2.6 trillion in combined operating profit during the same fiscal year.
