Honda and Sony pause EV joint venture activities

Japanese automaker Honda Motor and electronics giant Sony announced today the temporary suspension of activities of their joint venture focused on electric vehicles, in order to reassess its future in a rapidly changing global market, AFP reported.

The joint venture Sony Honda Mobility (SHM), established in 2022, “will halt the development and market launch of its first model, called Afeela 1, as well as its second model,” the two companies said in a joint statement, CE Report quotes BTA.

According to the statement, Honda is conducting a “reassessment of its electrification strategy,” noting that the assumptions on which the joint venture was based “have changed significantly.”

Earlier this month, the automaker announced it expects significant losses related to its electric vehicle operations and has halted the development and launch of three electric models planned for production in North America. The company cited the removal of tax incentives in the United States for EV purchases, the easing of fossil fuel regulations, and declining competitiveness of its products in Asia as key reasons.

The profitability of its automotive business has also been affected by U.S. tariffs, the company added.

As a result, Sony and Honda will “review the commercial strategy” of Sony Honda Mobility, according to the statement, without providing a timeline for new decisions or announcements.