• by Tanya Gazdik , March 25, 2026

Sony Honda Mobility is discontinuing plans to create both a sedan and SUV under a new nameplate, Afeela. 

“SHM was supposed to kick off customer deliveries of the Afeela 1 late this year,” according to Motor1. “The launch trim was the $102,900 Signature, with a more affordable $89,900 Origin scheduled for a 2027 debut, but those plans obviously won’t materialize. Pre-production had already started at Honda’s East Liberty Auto Plant in Ohio, so canceling the car this late doesn’t bode well for the joint venture established less than four years ago.”

The vehicle represented a Japanese answer to the high-tech EVs from Tesla as well as Chinese automakers.

“It was supposed to resemble a high-end home theater on wheels: an electric car that would let passengers stream PlayStation games or movies, and eventually drive autonomously,” according to The Wall Street Journal.

The move comes on the heels of Honda retooling its electric-vehicle strategy in the U.S. due to a slowdown in the North American EV market.

“Earlier this month, the automaker said it would take a $15.7 billion write-down while canceling several coming EVs, including the Honda 0 Saloon, Honda 0 SUV, and Acura RSX,” according to Business Insider. “Honda had already exited a separate EV partnership with General Motors in 2023 and discontinued the Acura ZDX last year. The decisions leave Honda with one EV in the US market: the Prologue.”

While the real vehicle won’t come to fruition, gamers can still experience it in the PlayStation car racing game Gran Turismo 7. Moderators for the r/GranTurismo7 subreddit confirmed to Business Insider that the car is still available to drive in the game.

The decision leaves Sony Honda Mobility, the joint venture company, in limbo.

“Sony Honda Mobility will issue full refunds ‌to customers who made reservations for what was supposed to be its first model, the Afeela 1, in California, it said in a statement,” according to CNBC. “It added that it would continue discussions with Sony and Honda regarding its future plans.”