Sony Honda Abandons Joint Car Manufacturing, Turns to Explore Alternative Paths
Reports indicate that Sony Group and Honda Motor have decided to explore new business directions for their 50/50 joint venture, Sony Honda Mobility (SHM). On March 25th of this year, SHM announced the termination of the development and launch plans for its first model, Afeela1, and a second model under development, due to Honda's adjustment of its electrification strategy.
Afeela 1 was originally scheduled for launch in North America in 2026 and in Japan in 2027, with a starting price of $89,900 (approximately RMB 650,000), and pre-orders had already begun.
This high-end, all-electric sedan was equipped with 40 environmental perception sensors, compatible with the Sony PlayStation 5 game console, and pre-equipped with Level 4 autonomous driving hardware capabilities. It was once considered the "Japanese Tesla Model S." However, with the project's cancellation, all deposits have been fully refunded.
The premature demise of the Afeela project stems from Honda's strategic shift. In mid-March of this year, Honda announced the cancellation of three all-electric models, citing lower-than-expected demand in the U.S. electric vehicle market. As Afeela 1 shared a platform with the canceled electric models, SHM lost crucial manufacturing support.
Currently, the future of SHM's approximately 400 employees is a focal point. With the cancellation of the Afeela project, redundancy has emerged in departments such as marketing, and both parent companies are considering absorbing some employees. A new business positioning and personnel arrangement plan for the joint venture is expected to be determined as early as April.
SHM was established in 2022 with the initial intention of integrating Sony's software and entertainment capabilities with Honda's manufacturing experience to reshape the automotive development model. Four years later, this joint venture's dream of building cars has come to a halt on the eve of mass production, but the two sides do not appear to have completely parted ways.
Sony and Honda are discussing alternative directions in products and services outside of electric vehicles, planning to apply the AI assistant, audio system, and sensor technology accumulated from Afeela 1 to other fields.
For Sony, this collaboration remains a way to extend its core entertainment business into the realm of mobility. Continuing to cooperate with Honda will provide Sony with an experimental platform to create new entertainment experiences.