TOKYO, Mar 25 (Pulse News Wire) – Sony Group Corporation (6758.T) announced today that its joint venture, Sony Honda Mobility (SHM), has decided to halt development and sales of its first two electric vehicle (EV) models, AFEELA 1 and the second model. This decision follows a strategic review initiated due to changes in Honda's electrification strategy announced on March 12, which made it difficult to utilize certain technologies and assets previously planned for use.
Under the current accounting method, Sony reports SHM’s post-tax net profit proportionally based on its holding ratio of 50%. The cessation of these models could impact Sony’s consolidated operating profit for fiscal years 2025 and 2026. However, Sony believes that the overall effect on its consolidated performance and financial position will not be significant. In addition to halting the development of the AFEELA models, SHM will reassess its future direction.
Pre-orders for AFEELA 1 customers in California will be fully refunded promptly. Discussions among Sony, Honda, and SHM will continue to determine the revised strategic approach moving forward. This strategic shift reflects the evolving landscape of the EV industry and underscores the need for flexibility in adapting to changing market conditions. Further updates on SHM’s revised business plan will be communicated once finalized.
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