Sony and Honda scrapped their next EV before launch. You can still drive it on PlayStation.

• Honda and Sony axed the Afeela, a tech-heavy electric sedan that was slated for sale in 2026.
• The decision leaves Sony Honda Mobility, their joint venture company, in limbo.
• Analysts say they aren't surprised by the cancellation — but were surprised by how late it came.

The Afeela is dead.

The car — a PlayStation-linked EV developed through Honda's joint venture with Sony — had been positioned as a tech-forward flagship, featuring multiple screens (including on the hood), autonomous driving capabilities, and even a spot to hold a PS5 controller.

Plans to build the $90,000 electric sedan and a future SUV sibling were scrapped on Wednesday.

It's the latest shift in Honda's approach to building EVs in America. Earlier this month, the automaker said it would take a $15.7 billion write-down while canceling several coming EVs, including the Honda 0 Saloon, Honda 0 SUV, and Acura RSX. Honda had already exited a separate EV partnership with General Motors in 2023 and discontinued the Acura ZDX last year.

The decisions leave Honda with one EV in the US market: the Prologue.

Afeela's cancellation stands apart.

Honda and Sony formed an entirely separate company, Sony Honda Mobility, to develop the car. SHM told Business Insider on Wednesday it's continuing "to discuss the path forward with its parent companies on the future of SHM."

The model's cancellation didn't shock industry analysts.

"This aligns with Honda rethinking its EV plans, especially in the US market," Seth Goldstein, a senior equity strategist and EV industry specialist at Morningstar, told Business Insider.

He said Honda is likely shifting toward a more hybrid-heavy lineup while reassessing how to build profitable EVs without relying on government incentives.

While the cancellation itself wasn't surprising, the timing was.

Sony Honda Mobility recently showcased Afeela at CES, heavily promoted it on social media, and added the vehicle to the PlayStation car racing game Gran Turismo 7 in a 2025 update. Moderators for the r/GranTurismo7 subreddit confirmed to Business Insider that the car is still available to drive in the game.

SHM had said it expected to launch the physical car in California by the end of the year.

Pulling the plug on a vehicle so close to launch is "definitely not the industry norm," Adam Bernard, a former director of competitive intelligence at General Motors, told Business Insider.

"A last-minute pull is very unusual," he said.

More broadly, Honda's shift highlights a growing divide in how automakers are approaching the US EV market.

Toyota — long seen as a laggard in fully electric vehicles — has recently accelerated its EV plans, underscoring how differently the longtime rivals are navigating the transition.

Goldstein said 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.

Still, analysts don't see this as the end of Honda's EV ambitions altogether.

"My guess is that they may revisit their plans and perhaps produce something lower in cost toward the end of the decade," Sam Abuelsamid, an auto industry analyst at Telemetry, told Business Insider.

He added that while Afeela was slated for production in Ohio, Honda is likely to repurpose that capacity for other vehicles rather than leave it idle.

What remains unclear is where Sony Honda Mobility fits into Honda's next phase. A Honda spokesperson said the company had "no insight into the announcement," referring questions to the joint venture.

"This decision follows discussions between our parent companies, after taking into account the significant impact of Honda's EV strategy change," SHM told Business Insider.

Work at Honda or SHM? We want to hear from you. Contact Ben Shimkus at bshimkus@insider.com or Signal at bshimkus.41. Use a personal email address and a nonwork device; here's our guide to sharing information securely.