Sony Honda Mobility has canceled the Afeela 1 and its follow-up EV after Honda’s retreat from the 0 Series wiped out key technology, resources, and launch plans.

Sony Honda Mobility's Afeela electric-vehicle program has been officially canceled, placing an end to the planned Afeela 1 sedan and a second future model that were being developed alongside Honda's now defunct 0 Series EV lineup. The move comes after Honda recently announced that it will no longer be developing its planned 0 Series electric cars.

Sony Honda Mobility (SHM) said that the Afeela program, which had depended on important Honda technology and resources as part of the initial development plan was directly impacted by that move. SHM noted in a written statement that the joint venture was no longer able to access some planned resources due to Honda's reevaluation of its electrification strategy which was disclosed on March 12, 2026. Consequently, it was also added that it was no longer able to launch the Afeela models as planned.

Honda has previously blamed the cancellation of its 0 Series EVs on growing pressure from fiercely competitive Chinese automakers as well as a slowdown in the demand for electric vehicles in important areas, including the US and Asia. Honda said at the time that its competitiveness had declined as a result of its inability to provide products with better value than more recent EV brands.

In January 2025, the Afeela 1 sedan made its final public appearance in near production form at the Consumer Electronics Show (CES) in Las Vegas. Midway through 2026, customer deliveries were supposed to start in California, with right hand drive production for Japan to follow later in the year.

It was anticipated that the high end electric vehicle will start at $US102,900 ($AU148,220) and have a driving range of up to 483 km. Prior to a wider US expansion, California was supposed to be the first launch market. SHM stated all reservation deposits made in California will be refunded. Also, stated that discussions between Sony and Honda about future business plans will continue, even if the Afeela 1 and its intended follow up model have now been scrapped.

Thus, Business Fortune is of the view that the Afeela cancellation highlights the mounting challenges in the global EV market.