Sony and Honda have abandoned plans to launch their highly anticipated Afeela electric vehicle.

The Afeela 1 sedan, priced at around US$102,900 (A$150,000), was slated for a US debut later this year, with a second SUV model planned for later in the decade.

Developed under the Sony Honda Mobility joint venture, the vehicle aimed to blend automotive engineering with Sony’s entertainment ecosystem, offering features like in-car PlayStation streaming and a dashboard-spanning digital interface.

Both models have now been scrapped following Honda’s broader retreat from its electric vehicle strategy in North America.

Earlier this month, the automaker cancelled multiple EV programs and warned of major financial impacts, citing slowing demand and intensifying competition – particularly from Chinese manufacturers.

Sony Honda Mobility said Honda’s decision removed key technologies and production foundations critical to the Afeela program, leaving “no viable path” to bring the vehicles to market.

The cancellation reflects a broader cooling in the global EV sector, as rising costs, reduced government incentives and shifting consumer demand force automakers to reassess aggressive electrification timelines.

Premium EVs like the Afeela 1 have faced additional scrutiny, with critics questioning their value compared to longer-range and more affordable rivals.

The move is also a blow to Sony’s ambitions to expand into mobility as a software-driven service platform. The company had envisioned vehicles as an extension of its entertainment ecosystem, with recurring revenue from digital content and features.

Despite the setback, Sony Honda Mobility says it will continue evaluating its future direction, while refunding deposits to early reservation holders.