Sony and Honda Shift Focus to AI and Tech After EV Plans Collapse
EV Plans Fell Through
Sony Group and Honda Motor announced that they will maintain their 50-50 joint venture and pursue other opportunities. On March 25, 2026, Sony and Honda canceled the Afella 1 electric vehicle; however, the two will continue to work together developing other products.
Honda's electrification strategy revamp was responsible for this turnout, but fret not, as the two Japanese giants in their industries will continue to work together, albeit chasing other projects, Nikkei Asia reports.
The joint venture came at a time when Honda wanted to marry its automotive hardware expertise with Sony's software and game engineering. In a bid to catch up to its industry rivals in the EV space, the Sony-Honda Mobility partnership teased the Afeela 1 model, the joint venture's first product.
The Fallout
Honda and Sony's pivot means about 400 employees will likely be reassigned, with the parent firms reportedly working to absorb a portion of each. Reuters stated that they were unable to reach the two firms for further comments at the time of writing.
While plans for a complete electric vehicle have fallen by the wayside, Honda and Sony will continue to work together on other projects. As Nikkei reports, both sides in the venture will explore non-EV products and services related to Afeela 1 technologies, including an artificial intelligence assistant and an audio system.
The Door Isn't Completely Shut
However, this may be the case for now, seeing as Honda isn't quite as mobile as it once was. A decline in sales, mixed with some catching up, suggests the Japanese brand may need to go back to the drawing board on its core business before making very bold, risky moves. Sources also report that the Sony-Honda Mobility partnership may still produce a fully electric passenger car in the future; however, no such timeline was mentioned or reported.
Honda still has a bunch of EVs on the way and several electrified hybrid offerings in the market today, but none as advanced or as bleeding-edge as what some Chinese manufacturers are doing. Even BMW is shifting much of its focus to EVs after pledging to retool its oldest factory to build only electrified passenger cars. The question is, will Honda evolve fast enough, and does it need to?
For now, North American markets will have to wait longer for a new Honda EV. The prospect of a Sony-powered entertainment sphere built on Honda bones was a worthy prospect back when the companies first announced their partnership in 2022. After four years, mounting industry pressure has led Honda to scale back, which could further cut into Honda's lead as electrification continues to ramp up in other markets.
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This story was originally published April 18, 2026 at 7:15 AM.