Even Sony and Honda Couldn't Make It Work: Is Cross‑Industry Carmaking Really Dead on Arrival?

Giant tie‑up collapses after three years

Sony (索尼) and Honda (本田) have abruptly wound down their high‑profile electric vehicle venture. Sony Honda Mobility (索尼本田移动出行, SHM) said its AFEELA project will end after three-and-a-half years of development, surprising an industry that had pinned hopes on a tech‑meets‑OEM model born at CES in 2023. The companies reportedly blamed weaker U.S. EV demand and a strategic shift inside Honda for the decision; it has been reported that preorder deposits will be refunded to customers.

The ambitions were serious. Sony and Honda each invested 5 billion yen (各出资50亿日元) to form SHM in 2022, unveiling the production AFEELA 1 at CES 2025 with premium audio, a panoramic screen and claims of L4‑ready hardware. But delivery slippage, limited initial throughput — it has been reported that Honda’s Tokai factory was to supply only about 5,000 units versus Sony’s target of 20,000 — and protracted debates over pricing and sales strategy stalled the rollout.

Clash of cultures and market reality

The collapse exposes deeper problems than engineering. Sources say the partnership’s 50/50 ownership created decision deadlocks. Sony pushed for rapid, user‑facing innovation and end‑to‑end AI stacks; Honda prioritized proven, conservative ADAS approaches and manufacturing stability. It has been reported that even internal disagreements over the autonomous architecture — and how to migrate data between systems — slowed progress. SHM disclosed cumulative losses of 72.5 billion yen over two years (两年时间累计亏损725亿日元), underscoring the financial strain.

There is a broader market context. Honda reportedly faces its first annual loss in 63 years, with forecasts of 4200–6900 billion yen in FY2025 losses (4200亿至6900亿日元，约合人民币182亿至300亿元) amid falling sales in North America and China. U.S. EV penetration remains low — the project team cited market timing and tariff pressures as headwinds — raising a question for Western readers: can novelty and entertainment‑grade features offset cost, range and charging realities that buyers actually prize?

Is cross‑industry carmaking fundamentally unviable? Not necessarily — but AFEELA shows how fragile such collaborations are when strategic priorities diverge, production control rests with the OEM, and market timing shifts. For China and other markets watching closely, the lesson is stark: brand halo and tech demos are not a substitute for scale, clear governance and a go‑to‑market plan aligned with regulatory and trade realities.