On the Dash:
- Sony and Honda scale back Sony Honda Mobility after scrapping plans for the AFEELA vehicle.
- Nearly all joint venture employees were reassigned to parent companies or affiliates.
- EV market pressure and uncertainty reshape the outlook for the future Sony-Honda collaboration.
Honda and Sony announced they are scaling back operations for their EV joint venture, Sony Honda Mobility (SHM). The decision comes after the companies announced they couldn’t bring products to market quickly under their current structure.
Sony Honda Mobility will be restructured immediately following this decision. Nearly all SHM employees are being reassigned to roles in their respective parent companies as part of this process.
Despite the restructuring, Sony and Honda say that their broader partnership remains intact. Both companies say they will continue discussions on future collaboration focused on software-driven user experiences and advanced driver-assistance systems. It remains unclear what concrete products or services will emerge from the joint venture.
SHM’s debut model shelved
Honda announced in March that it was revising its four-wheel electrification strategy, triggering a reassessment of SHM’s future. On March 25, SHM announced the cancellation of development and launch plans for both the AFEELA 1, the venture’s debut model, and a planned second model.
​The AFEELA brand was unveiled at CES 2023. At the time, SHM positioned the brand as a premium EV initiative focused on software-defined mobility and in-car innovation.
​The vehicle was designed to combine Sony’s software, sensor, and entertainment technology with Honda’s automotive engineering and automotive manufacturing expertise.
​Move reflects shifts in global EV market
Notably, the decision to scale back Sony Honda Mobility comes amid continued volatility in the global EV market. Automakers worldwide have been adjusting their EV strategies as demand growth slows, costs remain elevated, and competition intensifies, particularly from Chinese manufacturers.
​Honda is among several Japanese automakers reassessing their EV investment timelines due to shifting market conditions.
