SONY-HONDA MOBILITY has announced that it will “discontinue the development and launch” of its Afeela1 electric sedan and following SUV after discussions between its parent companies, namely Sony Group Corporation and Honda Motor Company.

 

First mooted as an entertainment focused concept dubbed the Vision-S (pictured) at the Consumer Electronics Show (CES) back in 2020, the Sony-Honda range of models was joined by the Vision-S 02 SUV and Vision-S 01 Sedan in 2022, models which would later form the basis of close-to-production-ready vehicles shown at last year’s CES in Las Vegas.

 

In a statement, Sony-Honda Mobility said the decision was made “as a result of Honda’s reassessment of its automobile electrification strategy announced on 12 March 2026 and factoring the changes to the EV market, the underlying assumptions of Sony-Honda Mobility’s business operations such as the utilisation of certain technologies and assets planned to be provided by Honda were fundamentally altered, resulting in the announcement by Sony-Honda Mobility today to discontinue the development and launch of its first model, Afeela 1, and its second model”.

 

The announcement follows news published by GoAuto Premium earlier this month that Honda was cancelling three new EV programs slated for the North American market as it faces losses totalling 2.5 trillion yen ($A22.4 billion) over two years.

 

It is Honda’s first loss since it went public in 1957, and has forced the company to reassess its entire EV business, a shift it says was brought about in part by “changes in the internal combustion engine and hybrid electric vehicle categories” brought on by US government policy changes.

 

“We recognise that the entire automotive industry is undergoing a major transition,” said Honda president and CEO Toshihiro Mibe earlier.

 

“Looking back, it was an issue requiring reflection that we were unable to sufficiently revise our strategy with flexibility and multiple scenarios in response to changes in market conditions and policy trends.”

 

The company said it was suffering from “intensified competition due to the rapid emergence of newer EV manufacturers,” and would incur impairment charges and losses from write-offs on EV models it had planned to make in North America, in addition to impairment losses due to stiffer competition in China.

 

Honda said it planned to strengthen its hybrid offerings and streamline its EV model line-up “in light of the recent slowdown”.

 

“Honda will promote electrification flexibly from a long-term perspective, while balancing profitability and demand trends,” it said in statement, with Mr Mibe adding that the Honda 0 Saloon, Honda 0 SUV and Acura RSX were “hardly viable” under current market conditions.

 

“I’m fully aware of the passion poured in by many employees, business partners and sales staff, as well as the high expectations expressed by our customers,” he said.

 

Like many other manufacturers, Honda had planned to eliminate sales of internal combustion engine vehicles and only sell EVs and fuel cell vehicles by 2040. However, Mr Mibe told the press conference Honda will now focus on hybrid vehicles.

 

LAMBORGHINI has officially pulled the pin on its first battery electric model – which would’ve been called the Lanzador (pictured) – due to a lack of demand for EVs within the Italian performance brand’s customer base.

 

Speaking with The Sunday Times, Lamborghini chairman and CEO Stephan Winkelmann cited the inability of electric vehicles to deliver a “specific emotional connection” for Lamborghini customers as a reason behind the decision.

 

Mr Winkelmann went on to say that Lamborghini investing heavily in EVs when neither the market nor its customers are ready for them “would be an expensive hobby, and financially irresponsible towards shareholders, customers (and) to our employees and their families”.

 

In May 2021, Lamborghini announced the introduction of a battery electric model into its stable by 2030. A little over two years later in August 2023, the Lanzador high-riding, 2+2 SUV ‘coupe’ concept was unveiled during Monterey Car Week.

 

Initially slated for arrival in 2028, the Lanzador would’ve arrived with a dual-motor, all-wheel drive powertrain with an output of one megawatt (1000kW).

 

In December 2024, Mr Winkelmann told Reuters the Lanzador had been delayed until 2029, but now Lamborghini’s first foray into the battery electric vehicle market has been officially scrapped.

 

Instead, the electric Lanzador will be replaced with a plug-in hybrid vehicle like the currently-offered Temerario and Revuelto supercars and the Urus SE SUV.

 

Meanwhile, arch rival Ferrari is charging towards the launch of its first EV model – dubbed the Luce – with its full global unveiling expected in May this year with Australian deliveries slated for the first half of 2027.

 

However, Lamborghini is not alone among performance brands shying away from the EV transition.

 

Over at corporate cousin Porsche, the battery electric versions of the 718 Cayman and Boxster sportscars could be scrapped entirely due to high costs and low demand for EVs.

 

In 2024, Lotus – which sells its internal combustion-powered Emira sportscar alongside the battery electric Eletre SUV, and Emeya sedan in Australia – cancelled its plans to go all-electric by 2028, instead placing a great focus on the development of hybrid technology.

 

In January last year, Aston Martin delayed its EV plans by five years, while Maserati scrapped an electric variant of its MC20 supercar in May the same year, although the latter still sells electric versions of its GranTurismo, GranCabrio, and Grecale models.

 

Furthermore, the European Union is poised to scale back its 2035 internal combustion engine ban from a 100 per cent to a 90 per cent CO2 reduction.

 

However, Lamborghini has not entirely ruled out EV models in the future according to Mr Winkelmann.

 

“Never say never, but only when the time is right,” he added.

 

“For the foreseeable future, only PHEVs. We will continue to develop electrification because we also need to be ready.”