CALIFORNIA — Honda and Sony canceled plans to build the Afeela electric sedan and its planned SUV sibling before they reached production. The cancellation affects vehicles that were slated for sale in 2026 with a planned price of $90,000.

Sony Honda Mobility, the joint venture formed by Honda and Sony to develop the Afeela, said this month, "This decision follows discussions between our parent companies, after taking into account the impact of Honda's EV strategy change." The company had previously announced plans to launch the electric sedan in California by the end of 2026.

The cancellation comes as Honda plans to take a $15.7 billion write-down and cancel additional electric vehicle models including the Honda 0 Saloon, Honda 0 SUV, and Acura RSX. Honda exited an electric vehicle partnership with General Motors in 2023.

"This aligns with Honda rethinking its EV plans, especially in the US market," said Seth Goldstein, senior equity strategist and EV industry specialist at Morningstar. "Honda is likely shifting toward a more hybrid-heavy lineup while reassessing how to build profitable EVs without relying on government incentives."

The Afeela had been showcased at CES 2026 and was added to the PlayStation game Gran Turismo 7 in a 2025 update. The vehicle featured multiple screens including one on the hood, autonomous driving capabilities, and a built-in holder for a PlayStation 5 controller. Production of the Afeela had been slated for Ohio.

"Toyota's experience with hybrid systems and battery development may make it easier to adapt its lineup, while Honda now faces a more fundamental reset," Goldstein said. Honda currently has one electric vehicle model in the US market, the Prologue.

"My guess is that they may revisit their plans and perhaps produce something lower in cost toward the end of the decade," said Sam Abuelsamid, auto industry analyst at Telemetry. Abuelsamid predicted that Honda is likely to repurpose the Ohio production capacity intended for the Afeela for other vehicles rather than leave it idle.

Moderators for the r/GranTurismo7 subreddit said the Afeela electric sedan is still available to drive in Gran Turismo 7.