Sony Honda Afeela scrapped: PlayStation EV abruptly cancelled following multi-billion losses
The eagerly awaited Sony Honda Afeela PlayStation EV has suddenly been discontinued following a loss of billions. The official cancellation of the Sony Honda Mobility joint venture came as a bolt from the blue to the industry, as the end of the project was completely unexpected. On 21 March 2026, just days before the project was halted, the company officially opened a new delivery centre in Torrance, California.
In mid-March, the company also announced a large-scale art collaboration with the designer Hajime Sorayama, which included exclusive T-shirts for the Afeela electric car. Now, there has been a complete change of direction. Development of the Afeela 1 electric saloon, priced at around $89,990, and a planned electric SUV have been halted. Anyone who has already paid a reservation fee in the US will receive a full refund. The reason for this sudden decision lies with Honda.
The Japanese car manufacturer has significantly altered its global EV strategy and cancelled three planned models for the North American market. As the Afeela 1 was to be based on Honda's new e:Architecture electric platform, Sony Honda Mobility has lost its entire technical basis.
The background to this radical decision by Honda is, among other things, the significant market changes that have occurred in the United States. The political turnaround in the US has severely stifled the EV market there. Following the abolition of significant purchase incentives of $7,500 and the relaxation of environmental regulations, customers are simply staying away. In response to this slump, Honda is making tough cuts and writing off around 2.5 trillion yen. This equates to approximately 13.5 billion euros or $15.55 billion.
Without Honda's technology, the joint venture no longer considers series production to be a realistic prospect. This also puts an end to the idea of the entertainment centre on wheels. The Afeela 1 was designed to showcase Sony's strengths, bringing the PlayStation directly into the car. Planned features included remote play for PS4 and PS5 games, special dashboard themes in the style of Astro Bot, and an immersive audio experience.
On paper, the saloon was also a technical heavyweight: Eighteen cameras, nine radar sensors, twelve ultrasonic sensors and a lidar system were set to enable Level 3 autonomous driving. However, car fans now only have the virtual drive left: the Afeela prototype can still be steered around the tracks in the Gran Turismo 7 racing simulation.
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