Sony Group Corporation and Honda Motor Co. are halting their Sony Honda Mobility (SHM) joint venture. The companies will discontinue development of the AFEELA 1 and a second planned electric vehicle model. This partnership launched in 2022 to combine Sony’s technology with Honda’s automotive manufacturing expertise.
Honda initiated the reversal after reassessing its electrification strategy amid a volatile global EV market. These shifts fundamentally altered the operational assumptions for the joint venture. Both partners are now reviewing the future business direction for SHM and will announce a new path at a later date.
SHM will issue full refunds for all AFEELA 1 reservation fees paid in California. Sony is currently evaluating the financial impact for the fiscal years ending March 2026 and 2027. Management expects minimal financial damage because the joint venture operated under an asset-light business model.