Sony’s Afeela EV Is Finally Launching—but as a Niche, Low-Volume Brand

Six years after Sony CEO Kenichiro Yoshida walked out on stage at the Consumer Electronics Show to reveal plans to crash into the automotive world with a high-tech EV loaded with the latest in high-tech entertainment technology, officials with what’s now known as Sony Honda Mobility announced they’re finally set to begin delivering their first vehicle, the Afeela 1.

But despite the flashy tone of this year’s CES presentation, a lot of things have changed over the past six years. For one thing, the Afeela 1 sedan won’t be able to operate without a driver. And the company won’t make most of its money delivering entertainment into the vehicle, rather than by selling you the car itself.

Most significantly, at a time when the U.S. EV market appears to be in retreat, SMH officials acknowledged their once lofty sales aspirations have been downsized significantly. “We’re okay with being very niche and having lower volumes” than originally expected, Shugo Yamaguchi, the CEO of Sony Honda Mobility of America, told Autoblog following Monday evening’s presentation.

Afeela for You

In some ways, Afeela 1 hasn’t strayed far from the Vision-S concept Sony chief Yoshida revealed back in 2020. For one thing, it hews closely to the design of that prototype sedan and is studded with a variety of radar, camera and Lidar sensors. They’ll help improve the safety of the vehicle, SMH officials promised, while eventually, someday, perhaps allowing the EV to operate without a driver.

Inside, there’s a massive pillar-to-pillar digital display powered by Qualcomm technology, as well as screens for rear seat passengers. “It’s no longer about driving,” said Izumi Kawanishi, chief operating officer of Sony Honda Mobility of America. “It’s about how you use your time on the road.”

Afeela occupants will be able to interact with a “conversational agent” – think Amazon’s Alexa – to do anything from plotting a route to checking the weather or selecting something to stream on those screens. Afeela 1, meanwhile is set to become the first vehicle that can directly tie into the PlayStation Portal, giving mobile access to the system’s extensive game collection.

Not Ready for Prime Time

At least one key function promised for Afeela won’t be ready at launch – and possibly not for quite some time. Initially, Afeela 1 will offer modest “Level 2+” autonomy. This is similar to the General Motors Super Cruise system, meaning a motorist can take hands off the wheel but must still keep eyes on the road, ready to retake control in an emergency.

“We’re targeting Level 4,” said Yamaguchi, which translates into the ability for the vehicle to drive completely on its own, without any driver intervention. That creates the sort of living room on wheels environment perfect for selling streaming content and video game time to occupants. But SMH has “no timing” in mind to reach that target. At best, it’s hoping to move up one step at a time, next introducing Level 3 “hands-off/eyes-off” autonomy which will still require a licensed driver behind the wheel but allow them to play games and watch videos – as long as they’re ready to take over in an emergency.

Until those next-level technologies come online there’ll clearly be less payoff for motorists to buy an Afeela, several experts cautioned – and less profit potential for the entertainment side of the Sony entertainment juggernaut.

The Trump Factor

Pres. Donald Trump is clearly not a fan of battery-electric vehicles. He’s curbed federal spending on public quick chargers, rolled back federal mileage standards that would have encouraged automakers to rapidly increase EV sales, and convinced Congress to phase out federal tax credits for EV buyers.

While the $90,000 starting price for Afeela 1 means customer wouldn’t have qualified for those incentives, the Trump trade war will take its toll. The good news is that the electric sedan is set to roll off the Honda assembly line in E. Liberty, Ohio. But tariffs on the imported metals, parts and components used for Afeela 1 still will have “some impact,” said Yamaguchi. (He declined to say how much that will drive up production costs but Michigan-based Anderson Economic Group has indicated even domestic vehicles face an added $1,000 or more in production costs.

Afeela Prototype 2026

Even as Sony first revealed the original Vision-S concept skeptics questioned the company’s strategy. Sedans were already on the wane and are today barely a shadow of their former glory. That’s where the Afeela Prototype 2026 offers some hope for SHM. It’s not quite an SUV, with a body style that’s more in line with the new Toyota Crown Signia. But it’s certainly a more contemporary look and, acknowledged Yamaguchi, more in line with what family buyers might like. “Afeela 1 is too small for them,” he said during a media roundtable at CES.

But the production version of the Prototype 2026 could compound, rather than resolve, another challenge for SHM: affordability. The $90,000 price tag for the Afeela 1 already puts the sedan in a rarified niche. As with the Tesla Model X, expect the Afeela SUV coming in 2028 to be more expensive than the original sedan. Tesla sold just over 7,000 of the its Model S sedans worldwide last year. And, despite having a more mainstream design, buyers purchased just  over 3,500 Model X SUVs.

Clearly, Sony Honda Mobility officials have been adjusting their expectations downward. To start with, they now plan to offer Afeela 1 solely in California this year. And, while they claim “50%” of the country has shown interest in the EV, they’re only planning to expand into Arizona in 2027, while sending a handful of the EVs to select Japanese buyers about the same time. It’s unclear if the new brand will ever be available across the entire U.S.

More Options

While company officials declined to reveal hard sales forecasts, Yamaguchi made it clear the latest target is small. “We’re okay with being very niche and having lower volumes,” he said.

One way to increase sales would be to deliver a more affordable line-up, of course. Tesla did that with the Models 3 and Y, Rivian has the upcoming R2 and R3, and even Lucid is working up a lower-priced crossover expected to be called “Earth.”  For now, however, Yamaguchi said that’s not in the cards for Afeela. And don’t expect to see an Afeela robotaxi, either, he added. “We’re not looking at that. It’s not in our purview."

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That concerns a number of industry analysts who question whether Afeela 1 can generate even the modest sales SHM now anticipates. "It's a nice car," said Autoline analyst John McElroy, "but, for nearly $100,000, it really doesn't stand out."