HYDERABAD, India (GizTimes) —Sony group and Honda Motor have decided to stop work on their joint electric vehicle project under Sony Honda Mobility (SHM). The decision means the planned Afeela 1 car and another model under development will no longer move forward.
The companies said the move comes after Honda reviewed its electric vehicle strategy. Because of this change, some key technologies and support that were expected from Honda will no longer be available, making it difficult to continue the project.
Sony Honda Mobility was formed in 2022, when interest in electric vehicles was at its peak. The goal was to build premium EVs that combined Honda’s car-making experience with Sony’s strength in software and entertainment features. At the time, the companies expected cars to become more like digital platforms, where users pay for services and updates over time.
However, the market has changed. Honda recently said it expects a major financial hit linked to its EV plans and has decided to cancel or delay some projects due to slower demand in the North American EV market.
As a result, the Afeela 1 project has been stopped before reaching production. The company has also confirmed that customers who made reservations for the car in California will receive refunds.
Sony said it is reviewing how this decision will affect its finances, but expects the impact to be limited because the venture followed a low-investment model. Honda also said the halt will not significantly affect its financial outlook for the current year.
The decision comes shortly after SHM opened an Afeela studio and delivery hub in California, showing how quickly plans have changed.
Public reactions on Reddit and X feel quite mixed and a bit emotional. Some users think big companies like Honda don’t take enough risks. They feel new ideas often get stopped because companies play it safe instead of trying something new.
Others see it differently. They believe Honda is just reacting to the market and making a practical decision, especially when EV demand is not growing as fast as expected. 
At the same time, some users were more critical. They said Honda has a history of leaving projects at the wrong time, like in racing, and feel this could be another similar case. According to them, the company might be stopping just when things could have improved.
Overall, people are divided—some understand the decision, while others feel Honda is missing another opportunity.
For now, Sony and Honda say they will continue to discuss what comes next for the joint venture, but there is no clear timeline for future projects.
