The Investor
21 Apr 2026, 15:16
Sony Group, Honda Motor, and their joint venture Sony Honda Mobility (SHM) announced a strategic shift, deciding to scale down SHM operations following a reassessment of their electric vehicle plans. The move comes after the companies discontinued development and launch of the AFEELA 1 model and a second planned vehicle in March 2026.
The partners said that, under the current structure, it would be difficult to bring products and services aligned with SHM’s original vision to market in the short to medium term. As a result, they will review the joint venture’s framework and reduce its activities, with employees expected to be reassigned to parent companies where possible.
Despite the scale-down, Sony and Honda reaffirmed their commitment to mobility innovation and said they will continue exploring new forms of collaboration, particularly focusing on software-driven user experiences and advanced driver assistance technologies as the industry evolves.
The partners said that, under the current structure, it would be difficult to bring products and services aligned with SHM’s original vision to market in the short to medium term. As a result, they will review the joint venture’s framework and reduce its activities, with employees expected to be reassigned to parent companies where possible.
Despite the scale-down, Sony and Honda reaffirmed their commitment to mobility innovation and said they will continue exploring new forms of collaboration, particularly focusing on software-driven user experiences and advanced driver assistance technologies as the industry evolves.
