Sony Honda Afeela EV Project Cancelled: Why the ‘PlayStation Car’ is Dead

In a move that has sent shockwaves through the automotive and tech industries, Sony Honda Mobility (SHM) has officially announced the cancellation of the Afeela electric vehicle project. The high profile joint venture, which aimed to redefine the driving experience through "PlayStation  on wheels" technology, will no longer bring its flagship Afeela 1 sedan or its planned SUV to market.

Why was the Afeela EV Cancelled?

The sudden shutdown follows a massive strategic pivot by Honda Motor Co. On March 12, 2026, Honda announced a total overhaul of its global electrification strategy, leading to a projected $15.7 billion (2.5 trillion yen) writedown.

Because the Afeela brand relied heavily on Honda’s now scrapped "0 Series" EV platform and shared manufacturing assets in Ohio, the joint venture determined it no longer has a "viable path forward." Key factors contributing to the collapse include:

• Waning EV Demand: Cooling interest in fully electric vehicles in the U.S. and European markets.

• Regulatory Changes: The removal of the $7,500 federal EV tax credit in the U.S. and shifting tariff policies.

• Chinese Competition: Rapidly advancing, low cost EV alternatives from manufacturers like BYD and Xiaomi.

Afeela 1 Refund Information for Customers

For those who had already placed reservations for the Afeela 1 Signature Edition, Sony Honda Mobility has confirmed that full refunds will be issued immediately.

The cancellation is particularly jarring given that the company had just celebrated the grand opening of its Afeela Studio & Delivery Hub in Torrance, California, on March 21 just four days before the project was terminated.

What Happens to the Sony-Honda Partnership?

While the current vehicle models are dead, the joint venture itself has not been formally dissolved. In a joint statement, Sony and Honda noted they will "continue discussions" regarding the future direction of the partnership.

However, industry experts suggest this marks a significant retreat for tech giants attempting to enter the automotive space. Sony now joins Apple, which famously cancelled its "Project Titan" car in 2024, in discovering just how difficult and capital intensive the transition from consumer electronics to vehicle manufacturing can be.