Sony Honda Mobility (SHM) announced on March 25 that it is discontinuing both the Afeela 1 electric sedan and its unnamed SUV concept — ending a six-year collaborative project between two of Japan's biggest tech and automotive brands.

The $90,000 Afeela 1 had been positioned as a high-tech luxury EV with 40 sensors, full-width dashboard screens, and PlayStation game streaming built into its infotainment system. SHM had even begun trial production at Honda's East Liberty Auto Plant in Ohio earlier this year. But following Honda's March 12 announcement of a sweeping EV strategy overhaul, the joint venture determined there was "no viable path forward."

Honda's retreat from electrification is dramatic in scale. The automaker disclosed a write-down of up to 2.5 trillion yen ($15.7 billion) on its EV investments — its first annual loss in over 70 years as a public company. Honda had already cancelled the Zero Series Saloon and SUV earlier this month. The Afeela became the latest casualty.

SHM said it will issue full refunds to California customers who put down $200 reservations for the Afeela 1. The joint venture said it will continue discussions about future business plans, though it's unclear what form those might take without Honda's originally planned technology contributions.

The Afeela's cancellation is part of a broader global EV retrenchment. Automakers facing slower-than-expected demand, rising competition from Chinese manufacturers, and the lingering effects of shifting trade policies are scaling back electric ambitions that seemed inevitable just two years ago.

Sony first revealed its Vision-S electric concept at CES in 2020. The Afeela project, launched in 2022, represented its most committed push yet into mobility. That chapter appears to be over.