In a surprising turn of events, Honda recently announced the cancellation of its planned electric vehicles for the U.S. market. This decision comes amidst climbing gas prices and a slowdown in electric vehicle (EV) demand. The three vehicles affected are the 0 saloon, the 0 SUV, and the Acura RSX, all of which were set to be built on Honda’s new EV platform.
These vehicles were not alone in their reliance on this architecture. The platform was also intended for use by Afeela, a joint venture between Sony and Honda. Consequently, the Afeela 1 sedan and another unnamed crossover, which were to be produced in America, are now also discontinued.
The Afeela 1 sedan was very close to launching, having been showcased as a production-intent prototype at CES in Las Vegas earlier this year. Afeela had even established six showroom studios across California, allowing potential buyers to experience the vehicle up close. Just days ago, a delivery hub was opened in Torrance, California, in preparation for vehicle distribution.
Refunds for Reservation Holders
Despite the extensive preparations, Sony Honda Mobility (SHM) announced the cessation of both the Afeela 1 sedan and the crossover’s development. The company cited the inability to use technologies and assets originally promised by Honda. In a statement, SHM explained:
[A]s a result of Honda’s reassessment of its automobile electrification strategy announced on March 12, 2026, SHM will not be able to utilize certain technologies and assets that were originally planned to be provided by Honda at the time of SHM’s initial business planning. In light of this change, SHM has determined that it does not have a viable path forward to bring the Models to market as originally planned.
Interestingly, the cancellation comes shortly after a grand opening event for the Torrance delivery hub, which included attendance by executives, reservation holders, and local officials. The event featured a ribbon-cutting and was celebrated with enthusiasm, as shown in this LinkedIn video.
With the Afeela 1 no longer moving forward, the purpose of the delivery hub and other showroom studios is unclear. SHM has committed to refunding deposits for reservation holders and will continue discussions with Sony and Honda about future business strategies.
Challenges in the Competitive EV Market
Even if Honda’s EV plans had proceeded, the Afeela cars faced significant hurdles in the competitive EV market. The Afeela 1, priced at $89,900, offered a 91-kWh battery with an estimated 300-mile range and 150 kW DC fast-charging. This specification was seen as underwhelming compared to other market offerings.
From a design perspective, the Afeela 1 did not stand out, resembling many other generic EV designs. The interior featured a vast array of screens and black leather, with a steering yoke that might not have been user-friendly.
Sony Honda Mobility aimed to create a “software-defined vehicle” using 40 sensors for advanced driver-assistance systems. The vehicle included a large panoramic dashboard screen powered by Unreal Engine and offered high-quality audio experiences and noise-canceling technology. SHM promoted the cabin as a “Mobility as a Creative Entertainment Space,” where occupants could enjoy content through optimized sound systems and displays.
Despite these features, the Afeela 1 struggled to present a compelling alternative to established EVs like the Lucid Air Touring, which offers more power and range at a lower price. Without a proven track record in the automotive sector, Sony and Honda faced a steep climb in convincing buyers of their vehicle’s value.
While the discontinuation is disappointing, it leaves room for future innovation. Sony Honda Mobility may re-enter the market with a new approach in the coming years.
Image Source: Sony Honda Mobility
Original Story at www.theautopian.com