Sony Honda Mobility Reveals New EV Prototype at CES in Las Vegas

• The Afeela 1, priced from $89,900, is scheduled for delivery to California customers in late 2026, with a second model based on the new prototype planned for 2028
• The unveiling contrasts sharply with broader industry trends, as weakening EV demand, tariffs, and removal of the $7,500 federal tax credit have led most automakers to cancel or pause EV production
• Sony Honda Mobility was formed in 2022 to leverage Honda's vehicle-building experience and Sony's gaming and software expertise to compete in the EV market

Sony Honda Mobility Unveils New EV Prototype at CES 2026

Sony Honda Mobility, a joint venture between Sony Group and Honda Motor, revealed a new electric vehicle prototype at the CES trade show in Las Vegas on Monday, positioning itself counter to the broader U.S. market trend of scaling back EV investments.

Key Developments:

• The company plans to deliver a new model based on the Afeela prototype to U.S. customers by 2028
• Deliveries of the Afeela 1, the joint venture's first EV introduced last year, are scheduled to begin in California late 2026
• The Afeela 1 is priced at $89,900

Market Context:

The unveiling stands out at CES 2026 as most U.S. automakers are retreating from EV commitments due to weakening demand, tariff pressures on auto imports, and policy headwinds. The Trump administration has eliminated the $7,500 EV tax credit, dampening consumer interest in electric vehicles. Many manufacturers have cancelled new EV launches and paused or halted production.

Company Background:

The Sony Honda Mobility joint venture was established in 2022, combining Honda's automotive engineering and manufacturing capabilities with Sony's software development and gaming expertise. This strategic partnership aims to compete in the increasingly competitive EV market by leveraging both companies' core strengths.

Implications:

Despite challenging market conditions, Sony Honda Mobility is pressing forward with its EV strategy, targeting premium-priced vehicles in the California market initially. The company's decision to maintain its timeline signals confidence in long-term EV adoption, even as policy and demand conditions remain uncertain.