Sony Honda Mobility has announced the discontinuation of its electric vehicle project, specifically halting the development and launch of the Afeela 1 and Afeela 2 models. The company indicated that it would reassess its business direction and is expected to reveal future plans soon, although skepticism remains about the viability of the project.
This decision comes as Honda faces significant challenges in 2026, including a reported loss of up to $15.7 billion tied to its investments in electric vehicles. The shift in the U.S. market towards fossil fuels, along with the removal of federal EV tax incentives and new tariffs, has adversely affected Honda's business operations.
Initially introduced six years ago with the Vision-S concept, the Afeela project struggled to keep pace with advancements in the automotive sector. Critics have pointed out that the Afeela 1 appears outdated and lacks the appeal found in competing models, while the growing market preference for SUVs further complicates its position.