Sony Honda Mobility has announced the cancellation of its electric vehicle development program, discontinuing work on both the Afeela 1 sedan and a second unnamed vehicle that was in development.

The joint venture between Sony and Honda had been developing the Afeela 1, an electric sedan with a reported price point of $90,000, along with an SUV concept referred to as the Afeela 2. Both vehicles were part of the companies' collaborative effort to enter the electric vehicle market.

The decision comes amid broader changes to Honda's electric vehicle strategy. The Japanese automaker recently reversed its plans to launch additional electric vehicles in the U.S. market, reflecting adjustments to slower-than-expected EV demand and shifting policy environments.

Sony Honda Mobility, the joint venture established to develop and manufacture electric vehicles combining Sony's technology expertise with Honda's automotive manufacturing capabilities, cited market conditions in its decision to halt the program. The company determined there was not a viable path forward for the planned vehicles.

The cancellation represents a significant shift for both companies, which had positioned their collaboration as a way to compete in the evolving electric vehicle market by leveraging Sony's consumer electronics and entertainment technology alongside Honda's automotive engineering and manufacturing experience.